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How Do You Consolidate Payday Loans?

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Burdened by exploitive payday loans? Did you know you can consolidate them? Find freedom from high-interest rates and nagging debt collectors now.

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In 2018, the average American had about $38,000 in personal debt, with 1 in 10 Americans stating that they will be in debt for the rest of their lives. For many of us, the mountain of debt seems so immense that we’d rather not even acknowledge it.

Many of us may have been at a point in our lives where the sight of a credit card statement or utility bill creates a deep sense of dread. A 2015 study by the American Psychological Association showed that around 72% of Americans reported feelings of stress related to money.

 

Getting Our Gear In Order

Before we can go out and start traversing our debt mountain, we need to check our gear. We need to assess the exact extent of our debts, how our income can help us chip away at it, and what we can do to start our climb to the summit.

 

Steps to Freedom

Here are some steps to help us assess our debt and traverse our unique financial landscapes:

Find Out Precisely How Much Is Due

This is where we start by ripping off the band-aid. We need to get statements from all of our creditors, so we have a clear idea of what the real, current balances are. We also need to be mindful that if we’re already behind on payments, due to interest rates, that balance will only increase.

That’s why we need to check our balances to make sure they’re current. Also, we need to pay very close attention to our interest rates; they are what decide how fast our balance will grow over the repayment period.

Most importantly, these interest rates will let us know what percentage we should aim for when we consolidate all our debt into a single repayment amount.

 

Calculate What We Can Afford To Pay and Research Options to Consolidate Debt

Let’s start with our salary since this is mostly where we will get the funds to pay off our debts. Those of us that have variable incomes, like sales reps or service industry employees, need to base it on a worst-case scenario of the very worst month income-wise.

Over-estimating our income will cost us big-time in the long run, as missing a repayment on a consolidation loan will only add to that interest rate we spoke about earlier. Also, it’s time to check our regular monthly expenses.

At this stage, we’ll disregard our monthly repayments, as they’ll all be consolidated later on. We need to add up everything we need to survive every month.

Many people might say that one needs to scrounge to get through this as fast as possible, but we should allocate a little bit to entertainment as well. This helps make us feel like we still get to live life while working through our debt.

Once we’ve made all the deductions, we deduct all the expenses as mentioned above from our income. The result is our disposable income or the exact amount we can afford to pay toward our debts.

 

Time to Consolidate Our Debts and Start Living Stress-free

Now that we’ve got a clear picture of our unique mountain and done all the legwork, we can partner with a company to help us start the climb and get some payday loan relief. It’s time we spoke to some solution-providers and decided on the option that will suit our budget and lifestyle best.

At this stage, having done our research and budgeting, we’ll pick a repayment option that’ll suit our available income as well as having a favorable interest rate. This is also where we need to commit to ourselves that we’ll not make any new debts.

Now is an excellent time to pull the credit cards from our wallets and store them in a safe or a drawer for absolute emergencies only. There’s no point in going through all the effort of consolidating all our debts, only to add new ones a few months down the road.

Now might also be an excellent time to look into an additional income in the form of a part-time job. Adding to our expendable income in this manner will only help us stay on top of repayments while helping to cover unexpected expenses.

 

Welcome To The Summit (Conclusion)

For many people, being in debt is an overwhelming source of unhappiness. The depression associated with debt will often make us unwilling even to socialize. Happily, through realistic assessment, management, and a fair bit of self-control, we can work our way up this mountain.

Most importantly, we need to stick to the repayments and curb our spending, and before we know it, we’ll be financially free again. From the top of the mountain, it’ll also be easier to see better choices for ourselves to make financially.

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