Payday loans, also called payday advance loans, are designed for consumers who need short-term, easily obtained money with no credit check required. Unfortunately, payday loans come with extreme high interest rates (APRs), double-digit interest rates (day-to-day fees), and even short to none-existent terms. If you find yourself in need of some quick cash but lack the credit or financial wherewithal to obtain a traditional loan, payday loans might be an option to consider. However, if you choose to pay off your payday loan in one fell swoop, you will be charged exorbitant fees and be forced to deal with an endless string of debt. Instead, take the following payday loan relief tips to help you avoid some of the most costly mistakes when paying off your payday loan.
How You Can (Do) Payday Loan Consolidation Almost Instantly
The first tip is to ensure that you do not consolidate your payday loans by taking out another loan to repay them. Payday loan consolidation loans are meant to be paid off in one fell swoop and should therefore be repaid using one low monthly payment. Unfortunately, payday loan consolidation loans often come with very high interest rates, lengthy payback terms, and other similar pitfalls. By consolidating all of your loans into one loan, you can avoid many of these traps as well as getting rid of paperwork and late payment fees. In order to simplify things even more, you may wish to contact each company you owe funds to consolidate on your own or with the assistance of a third-party consolidation company.
Another payday loan consolidation mistake that often occurs is that consumers consolidate their debts and then proceed to charge on their cards. Debt consolidation is meant as a way to free up financial resources for future purchases and repayments and charging on cards in this process could damage your credit and reduce overall borrowing power. Rather than consolidating your payday loans and charging onto your cards, make sure that you make your payments on time, in full, consistently and to the letter. Even the most diligent consumers can and will run into credit issues and debt traps at some point so protecting yourself and your credit is a major priority when consolidating payday loans and credit card debt.