Published on 04/12/2008

Whether you want a payday loan to pay off bills or if you want a debt consolidaton loan to repay cash advances, consider these options.

Apply for a Payday Debt Consolidation Loan or for a Payday Loan to Pay Bills

Are you searching for a Payday Debt Consolidation Loan to consolidate and repay existing payday loans?

Or, are you searching for a Payday Advance so you can use the unsecured cash loan to pay bills?

Whichever type of loan you are seeking, review options below:

Payday Debt Consolidation Loan to consolidate and repay existing payday loans: Other than a chargeoff or filing bankruptcy, there are better ways to handle payday loan debt, either by getting a debt consolidation loan to payoff payday loan balances, undergoing debt management to negotiate a more affordable repayment plan, or to negotiate debt settlement.

Bad Credit Debt Consolidation Loan: Typically, people who have payday loan debt have bad credit, otherwise they wouldn't have had to rely upon payday loans to cover routine or emergency expenses. To get a debt consolidation loan, you'll need some form of security, such as a home or an auto with equity. The drawback of refinancing a home or an auto; other than fees, is that refinancing usually is at a higher interest rate than the original loan, thus making monthly payments a higher amount unless the loan term is extended beyond the original agreement.
Debt Management: You; or a professional company acting on your behalf, can contact your payday lenders to arrange a new, more affordable repayment plan. The benefit of using a professional is that often they can get creditors to reduce fees or maybe even part of the principal. The end result is that you'll get to repay the payday loan debt via monthly payments that fit your budget.
Debt Settlement: Again, either you or a professional company acting on your behalf can contact the payday lenders and negotiate a much lower payback balance, by reducing the debt up to half or more. Unlike Debt Management; however, this option would require immediate payment in full of the newly agreed balance, versus monthly repayments.
Chargeoff and Bankrupty: These two options should be your last to consider. With chargeoff you simply stop paying the debt and face possible lawsuits or other repurcussions.

Payday Loan to pay bills: Depending upon your eligibility, even though you are a high risk due to bad credit you could borrow up to $1,500 with no credit check, no security deposit (no collateral), and even with no cosigner. Payday loans can help you save money and protect your credit. For example, if you are about to have a credit card late payment, the late payment could threaten your credit score causing your credit card interest rate to escalate in addition to being charged a late fee. The drawback is that payday advances charge a high fee and are a short term versus a long term loan. If you rollover the loan, you have to pay another fee. These fees can add up quickly, making the balance due vastly exceed the original debt. If you use a payday loan to make bill payments or to cover unexpected expenses, repay it by the end of the original loan term.

Effective money management and responsible use of credit is key to long term security of personal finances.