How to Escape the Payday Loan Nightmare
5. Where to Find Help for Payday Loans
Payday loan companies may provide first aid
One of the first offers of assistance you receive may come from one of the payday loan companies you work with. If this payday lender offers you a loan with extended repayment deadlines, read all the fine print very carefully. Be sure to check and see the equivalent annual interest rate in the disclosure document. This reveals how much you will pay by the time all fees and interest are added to the loan. Also consider whether this loan will truly help your situation, or if the lender is simply looking to minimize its potential losses. When you’re dealing with a bunch of payday loans, you need help dealing with them all at once if you want to break free from the never-ending cycle of debt.
Banks and credit unions may offer a debt consolidation loan if credit is good
If you still have a good credit rating, you may be able to qualify for a low-interest debt consolidation loan from your bank or credit union. You can make an appointment to talk to them and bring the list of your debts that you have compiled. You should be open and honest with them so that if they are able to help you get a loan, you will get the help you need. If you have a mortgage and it’s from the same lender, they may have more options to help you than a lender at another financial institution.
The real trick with a debt consolidation loan, or any other type of personal loan used to pay off other debts, is to live on a realistic budget so that you don’t constantly spend more than you earn, accumulate more debt, and essentially end up out of debt. Double your debt and effort to get out of debt.
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