Payday Loan Consolidation Companies

Consolidating payday loan debt involves taking out a loan to clear your debts. While this is an option, you're still going to be expected to meet the same borrowing costs. Only borrow money you can afford to repay.

The best advice is to close your bank account so that you don't accrue any additional NSF charges and open a new bank account. You'll have control of your paycheck which will enable you to reach an agreement with the lender to pay back the money you owe at an affordable rate.

Ways to Consolidate Payday Loans

Peer-to-peer lenders - If you have a credit score of at least 640, you may be able to get a consolidation loan for up to $25,000 from Lending Club or Prosper. Provided that you have a fair credit score or better, you can consolidate loans and spread the cost of repayment over up to 5 years. You don't even need to provide collateral.

HELOC loans - Property owners will find consolidating payday loan debt easy because they can borrow money against the equity in their home. It's a bit like an agreed overdraft against your property because you can dip into the funds at any time. This will enable you to pay off your debt and spread the cost of repayment.

Credit card cash advance - If you have a charge card, issuers allow you to withdraw a defined percentage of your credit limit for any purpose. If your limit is relatively high, making a withdrawal each day will help you to raise a sufficient sum of money to perform payday loan consolidation.

Family loans - If you've run into a few difficulties, it's worth asking a member of your family whether they're prepared to lend you some cash to help you get back on your feet. The clear advantage of doing so is that you'll pay a low rate of interest and will have greater flexibility with respect to the repayments.

Payday Debt Relief

If you aren't in a position to consolidate payday loans, it's worth considering some of the latest debt relief programs. If you're in a position to offer your creditors a partial payment each month, it's worth considering starting a debt management plan or a debt settlement program. This will allow you to repay your debts at an affordable rate. However, it's important to appreciate that the IRS treats the elimination of payday debt as taxable indebtedness income.

If you don't have any money to offer your creditors, chapter 7 bankruptcy may be a more appropriate debt relief solution. However, the bankruptcy code was changed in 2005, which means that you mustn't have taken out a new cash advance for more than $750 within 70 days of filing. This is to prevent people from borrowing money that they have no intention of repaying.