Month: December 2022

  • You’re drowning in payday loan debt: should you do it yourself or seek credit counseling?

    Credit counseling companies offer an array of services and they widely advertise that they can help just about anyone with credit repair services and debt consultations. If you are in debt with payday loans, credit card balances, and personal loans, credit counseling companies may seem very attractive. Payday loans counseling companies near me often promise to stop harassing phone calls and promise to help you. For some debtors, credit counseling is attractive because it seems to mean that someone else will handle a credit problem.

    This is not always the case. It is important to remember that credit counseling companies very widely. Some get debtors into bigger trouble with high interest consolidation loans and other services that do more harm than good. Some charge hefty fees. If you are in debt, you need to do a little credit repair yourself before consulting a credit counseling company. Here’s what to do before contacting a credit counseling service:

    1 – Work on repairing your credit yourself. In most cases, you can resolve your debt issues without intervention. Rein in spending, develop a budget, and set up a loan repayment plan to ensure that your bills get repaid as quickly as possible. If you need to, focus on increasing your income.

    2 – Research credit counseling companies. If you think you need support, carefully consider the support you need. Do you need an over-spenders support group, a talk with your bank about making smarter financial choices, or a credit counseling company? If you decide you need credit counseling, carefully research companies to find a reputable one.

    3 – Apply for credit counseling after you have tried to resolve your debts yourself.
    payday loan debt & myths
    Do you believe these myths about multiple payday loan debt?

    Myth #1: “It is the fault of debtors/payday loan companies that some people have too many payday loans.”
    The truth: Some people blame payday loan companies for high interest rates that keep debtors in debt. Some people blame debtors for getting in over their heads with payday loans. The truth lies somewhere in between. It is important to only take out personal loans you know you can repay, but some payday loans certainly make repayment very expensive with hidden or extra fees. Legitimate payday loan companies have a responsibility to be up-front about loan costs (and the good ones are) and borrowers have a responsibility to only borrow money they know they can repay.

    Myth #2: “Rolling over payday loans is not a big problem.”
    The truth: Many debtors take a casual attitude about repaying payday loans, but this is a mistake. Each time you rollover or extend a payday loan, you increase the costs and interest rate on the loan. After only a few rollovers, your interest rate may be out of control. Payday loans in NC are meant for short term emergency borrowing only. If you need a loan for a longer period of time, apply for a line of credit or a personal loan.

    Myth #3: “The best solution to payday loan debt is credit counseling or a consolidation loan.”
    The truth: If you are in over your head with payday loans, your best bet is to do everything you can to repay your payday loan during your next paycheck. This may mean selling off some stuff you don’t need in a garage sale, taking on extra temp work, reining in spending, or even working overtime. Whatever it is, make a big effort to bring in extra cash so that you can repay your loan.…

  • You’ll have an easier time getting out of debt if you avoid these mistakes

    Whether you have lots of signature loans, payday loans, personal loans, credit card balances, or other debts, if you need to get out of debt, you’ll have a better chance to getting debt free if you avoid these mistakes. Closing down accounts with balances. Closing down accounts with balances can weaken your credit rating, which is not what you want to do if you want to avoid higher interest rates. Not having savings.
    debt if you avoid these mistakes
    Many debtors try to put every extra penny into paying off their loans, sometimes at the expense of their savings accounts. This can be a mistake. You need a savings account and an emergency fund to help deal with any problems that arise. Without savings, you might need to rely on even more loans in an emergency. Not having a realistic plan and sticking with it. Getting debt-free is a long-term plan for most people. It may take you months or even years to pay off what you owe. You need to develop a plan that works for you, based on your personal budget and debt load, and you need to stick with this plan to pay off your loans.

    Taking out new debt to deal with existing debt. It can be tempting to take out consolidation loans to make smaller payments. This may be a good idea, but not necessarily. Do the math to ensure that consolidation will really help you repay your debts faster. It can also be tempting to take out payday loans to pay off personal loan payments, but try to avoid this as well. Avoid any new debts while paying off your current loans. Having a lousy attitude. Feeling that you will never pay off your debt or feelings of helplessness will not help your case.…