How To Pay Off Payday LoansPosted by On

How To Pay Off Payday Loans

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Payday loans have a lot of benefits. But, if you are not careful with them, they can continuously make you bleed. A payday loan has a higher rate of interest and if you fail to pay off the loan on the due date you may have to pay extra fees and interest. The normal rate of interest for payday loans is about 20%, varying depending on where you live in Canada. Most major credit cards have interest rates of around 20% in Canada as well.

Other personal loans like long-term installment loans which have a longer tenor of payment and lower rate of interest are preferable under most circumstances. Installment loans, also known as term loans because you are expected to settle the loan in a fixed number of installments periodically, are not only more flexible but some of these loans can also be used to consolidate your debt into one loan. If you are thinking of a loan which provides all these benefits and more, Cashco flex loans should be your definite choice. Although Cashco Financial is known primarily for its multi-payment flex loans, it is also a famous payday loan lender. If you are looking for payday loans in Edmonton or at any other place in Canada, walk in to one of the nearby Cashco stores or visit its website.

Flex Loans

Flex loans are exclusively offered by Cashco Financial and are useful long-term loans which are hassle-free and much quicker compared to other forms of credit in Canada. It is processed, sanctioned and the money is disbursed within a couple of days. You can apply online and submit soft copies of your documents which will then be used to verify your credit score and total debt service ratio.

However, rate of rejection is almost zero. However, the amount of the loan approved would depend on the discretion of the lender as Cashco is a responsible creditor and doesn’t want to entrap customers in a never-ending debt cycle.  It also offers financial counseling sessions for its clients where they are taught how to manage their expenses and stay within their limits.

Best ways to get out of a payday loan trap

  1. Consolidate your payday loan debt: Some payday lenders allow debt consolidation. It is a program under which the borrower is allowed to move all the debt and then he is asked to clear that one loan. Even if some payday lenders don’t offer this facility, you can look for a long-term, low-interest, consolidation loan from some other lender. Payday loan rates of interest double or triple if you default continuously. The rollover fees also increase with successive defaults. If you fail to pay the debt, the lender reserves the right to refer it to a debt collection agency which then pursues you relentlessly till you settle the debt. Debt consolidation would save you from all this trouble, give you more time and lower your interest payment. Many credit unions offer consolidation loans at very low rates of interest.
  2. Consult a credit counselor: Credit counseling agencies are organizations which have the expertise of creating financial plans which can help you to slowly clear your mounting debts. You could either start with the bigger ones or the smaller ones. You can then move in descending or ascending order respectively. They are also knowledgeable about Canadian consumer protection laws and make you familiar with the ones in your favor, in case a lawsuit is filled by your lender.
  3. Don’t rollover your debt: Stop rolling over your payday loan again and again. This leads to a situation where the interest becomes more than the principal. Take a long term loan instead and settle this one.
  4. Don’t borrow more: You can’t borrow more money when you are trying to reduce your payday loans. You will have to stop wastage and live frugally. Stop buying expensive, luxury items which you can do without. Don’t take frequent long-distance tours. Do away with TV and expensive cell phone and internet facilities. Start car pooling and availing public transport. Use cash and debit cards instead of credit cards. Ask your bank to withdraw electronic money transfer facility from your account so that you don’t end up buying expensive gifts.

Conclusion

Don’t let your debt situation get out of your hand. Don’t borrow inconsiderately. Try to pay off your debts in small amounts regularly so that the interest doesn’t mount up. All this will keep you safe from the clutches of debt collection agencies and legal woes.

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Finance

Payday Loans

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