I have a problem with payday loans, how to pay back such debt? because I have to refinance the payday loans non-stop because I can’t pay them back, I have these payday loans for 60,000 USD, and I would like to pay them back and have one installment because refinancing is expensive – then I will never pay them back, I have no delays.
Can I get a consolidation loan for this amount? I am asking for advice, what should I do in this
Refinancing the payday loan is still a new option for delaying loan repayment within the prescribed period. Refinancing is increasingly appearing in loan companies as one of the options to avoid the consequences of defaulting on a loan.
Most loans and payday loans that you use are granted for a short period, usually, 30 days when it comes to payday loans. During these 30 days, you have to pay back not only the amount borrowed but also interest and commission on the loan.
Refinancing loans in my private opinion can be useful, because failure to pay the installment on time, can result in quite unpleasant consequences, such as:
- termination of the loan agreement
- referral to a debt collection company and incurring additional recovery costs that are not small
The problem with refinancing a loan begins when we fall into the debt loop and instead of accumulating capital for a total repayment of liabilities, we also have a few other loan installments on the back that are also asking for repayment.
Such a turn of events prevents the debtor from repaying the individual loans in the total amount. In fact, a few months of successive borrowing is enough to face the debt loop, which is very difficult to get out of.
The debt loop can have two faces, the first of which is when the debtor takes loans from other loan companies to repay the loan taken out somewhere earlier in the debt loop.
The second face of the debt loop is refinancing a payable loan directly with the same lender. Such refinancing is usually done by:
- panel available after logging in to the given loan company,
- or by direct telephone contact with the lender.
A refinancing loan is a very dangerous tool for delaying the payment of installments, why? because debt refinancing is not cheap and the debtor gains nothing but deferring the loan/payday payment until the next month. Where in a month this situation is likely to happen again, over and over again (or in a loop – but in debt).
A refinancing loan is a good solution because it allows the debtor to avoid criminal interest on unpaid loans, reminders, termination of the loan agreement or even activities of a debt collection company, but only if we use refinancing of the payday loan or loan only once.
So if you use the debt refinancing option more often, it is a sign that you have got caught up in the debt loop.
What to do in this situation?
In a situation where with the available budget you are not able to fully pay off your obligations and you still use refinancing loans, deepening your financial problems, it is reasonable to use a consolidation loan or consolidation loan.
It is very good that you do not have any delay in repayment of installments, because it would clearly ruin your chance to apply for a consolidation loan in the bank.
By choosing a consolidation loan, you will pay off all your liabilities, converting them into one installment of only one liability – a consolidation loan.
You can apply for consolidation in a bank or loan company, you can also try to take out a loan in the bank for any purpose and with the funds obtained – repay all loans and payday loans.
I don’t know your creditworthiness, your income, and the type of contract that connects you with your employer, but start applying for a consolidation loan in a bank, and if the bank does not want to consolidate these obligations for some reason, you will need to take out a loan consolidation, which is taken in a loan company (it will definitely be more expensive).
It all depends on your current living and financial situation and the amount of debt compared to your creditworthiness. In addition, if possible, try to borrow money from someone in the family – this is the cheapest form of getting out of debt. I keep my fingers crossed for you and wish you quick repayment of all your obligations! Get started today.