Guide to Refinancing Payday Loans
Share this article:
Can You Refinance Payday Loans?
How to Refinance a Payday Loan
1. Read Your Payday Loan Agreement
2. Research Alternative Loan Options
3. Apply for a New Loan
Pros and Cons of Refinancing Your Payday Loans
Options for Getting Out of Payday Loan Debt
Ask about extended payment plans: These plans divide your loan amount into smaller increments over a longer period of time, which may make it easier for you to pay what you owe. However, keep in mind that extended payment plans often involve paying more interest overall because the interest accrues over a longer period. Debt assistance counseling: Some nonprofit credit counseling organizations offer debt assistance. Credit counseling can help you understand your debts and create a plan to pay them off. Just make sure that the credit counseling organization is licensed in your state and that the counselor is certified. You can check out credit counseling organizations with your state’s attorney general’s office or consumer protection bureau. Borrow from friends and family: If you have friends or relatives who would be willing to lend you money, a family loan could help you repay the payday loan. But be sure to put the terms of the agreement in writing, including when you’ll repay the money, to help prevent any damage to your relationship. In general, it’s wise to borrow money from friends and family only if you’re confident you can repay it in a timely manner. Refinance a payday loan with a personal loan: Refinancing payday loans with a personal loan could help you get better rates and terms since personal loan interest rates tend to be lower and repayment terms are longer. Take out a debt consolidation loan: If you have more than one payday loan, you may be able to consolidate them with a debt consolidation loan, which is a type of personal loan used to consolidate debt. In this instance, you take out a new loan and use the money to fully repay the payday loans, and then you pay off the debt consolidation loan over time.
Frequently Asked Questions
About the Author
Share this article: