How to Get Debt Relief for Payday Loans. Debt relief from payday loans has been a dream for many consumers for a long time. The cycle of payday loans and high interest rates can leave them feeling hopeless for months or years after getting further into debt. Luckily, there are ways to get debt relief from these types of loans.
Look for companies with whom you can consolidate your payday loans. In the past, many companies refused to work with customers who were in payday loan debt because of the high interest rates involved. However, some companies are now open to helping consumers get out of debt.
Identify great interest rates or rates that are at least better than the extremely high ones that come along with payday loans if you decide to consolidate. Learn from your past mistakes and make a note of interest rates before you commit.
Take your expected monthly payment into account. Talk with the debt counselor or consolidation agent to understand how much you are required to pay. Make sure that you can meet these payments each month, otherwise you will find yourself in debt again.
Consider using a home equity or personal loan to get out of payday loan debt. These types of loans can give you immediate relief from your payday loan and end up cheaper for you to pay than if you continued paying off the payday loan company.
Get a cash advance form a credit card if you have one. Paying off the debt using the cash advance can cost you less money than paying the payday loan company and its high interest rates, since credit card interest rates are typically lower than those charged by Payday loan companies.
Pay off your payday loan as soon as possible. Even borrowing money from family and friends to pay off the loan is better than being in debt to a payday loan company. Chances are that the family member or friend will not require that you pay back interest in the hundreds like the payday loan company would.