Payday loans can be a costly and dangerous way to borrow money. The best way to pay off payday loans is to consolidate them into a new personal loan with lower interest rates. This will make your monthly payments more manageable and could save you money by reducing your overall interest payments. But make sure you find a loan with a lower interest rate than your current payday loans, to make it worthwhile.
If you are automatically deducting payday loan money from your bank account, ask the bank to stop the automatic deduction. You may need to close the account and move your money to a different bank account. Some banks won't open a new account for you if you owe a different bank. Federal law limits to 36% that APR payday lenders can charge military families on payday, anticipation of tax refund and title loans.
Unfortunately, the bottom line is that you can't borrow to get out of debt, especially with high-interest loans, such as payday loans. Under Washington law, you must first repay an existing loan before you apply for another loan with that lender. If you have changed your mind about a payday loan you recently applied for or if you got some cash and your circumstances changed, try returning it. However, the good news is that it is possible to get out of this cycle of constant need for payday loans with careful planning. Start working on your approach today because you definitely want your payday loans paid off as soon as possible before they cost you even more money.
Here are 5 reasons why people are refused a consolidation loan and what to do instead.
