![]() īanks, credit unions, and online lenders offer debt consolidation loans. This combines multiple debts into one new loan, ideally with a lower monthly payment. Explore Debt Consolidation LoansĪnother option is taking out a debt consolidation loan to pay off your existing payday loans. Just beware of high startup and monthly fees charged by some agencies. This helps get credit card debt under control. ![]() In exchange, you agree to close credit card accounts and pay off debt through the DMP over 3-5 years. This helps simplify payments and lower interest costs. The agency works on your behalf to get concessions from creditors. It negotiates with your creditors to reduce interest rates and create one monthly payment. This is offered through nonprofit credit counseling agencies. If you have high-interest debt across multiple credit cards and loans, a debt management plan (DMP) could help. Getting approved is quicker than a traditional bank. If you have fair credit or better, you should qualify for an online installment loan. Key things to ask:Īim for the lowest rate possible and shortest term to pay it off quickly. Shop around to compare interest rates and loan terms. Loan terms usually range from 6 to 60 months.īanks, credit unions, and online lenders offer installment loans. Interest rates are high but likely lower than a payday loan. The benefits are getting out of the payday loan debt trap and having predictable loan payments each month. This basically rolls all your different payday loans into one larger loan with a fixed monthly payment spread out over a set repayment term. Apply for an Installment LoanĪnother option is consolidating your payday loans into an installment loan. Ask what extended payment plans they can offer and how to get signed up. So reach out to your lenders and explain your situation-that you can’t afford the full balloon payment but want to pay back the loan. And the good news-these payment plans come with no extra fees attached! It gives you time to pay back the debt without getting hit with more charges. Many states actually require payday lenders to offer payment plans up to 90 or 180 days. This lowers the monthly payments to something more affordable based on your budget. This stretches out your loan balance over a longer period, usually in installments over the next few months. One option is asking your lender about an extended payment plan. You can also calculate the crazy high APR, which is likely over 400%! With all the info in one place, you can start figuring out next steps. ![]() This overview will help you see just how much you owe across all your loans. Log into your online account with each payday lender (or pull out your paperwork if you have it) and review all your loans. The first step is getting a handle on exactly what you owe. This article has some practical tips to help you get started. But there are options out there to restructure your payday loans and make them more manageable. Those super high interest rates pile up fast, and it can feel impossible to get out from under all that debt. How To Restructure Payday Loan Debt When Funds Are Lowĭealing with payday loan debt can be really stressful, especially when money is tight.
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