Will you save money by consolidating your payday loans? That depends on your current payday loan debt as well as the consolidation options available to you. Let’s take a look at whether consolidating your payday loans can help you save money.
How Much Do You Owe?
It doesn’t matter what you owe. In most cases, a payday loan consolidation program will lower your interest rate down to 0%. You’ll be paying principal as opposed to interest. You’ll get out of debt quicker and as long as you make your payments on time you will not be harassed.
What Are Your Consolidation Options?
Whatever you do, do not take a loan against secured property to pay off your payday loans. In many states, your home is protected from any and all creditors. There’s no reason to risk the roof over your head to pay off a creditor. The best payday loan consolidation option is a debt management plan which would lower your interest rate in most cases to 0% or possibly result in part of your balance being forgiven.
Some Options May Not Be Available to You
It is important to point out that some consolidation options may not be available to you. This is because most people who opt for payday loans have poor credit. The best way to go is a credit counseling payday loan consolidation plan. Hey, work!
In extreme cases, bankruptcy may be your only option. However, this may be a good thing because your payday loan debt may be fully discharged in a matter of weeks. Although your credit will take a hit, you don’t have to worry about paying off your payday loan debt.
Will you save by consolidating payday loans? The answer is a resounding yes! There are very few situations where a Payday loan consolidation program can’t help you. More than likely you’ll be debt-free within a year and ready to move on with your life.