Consolidate Payday Loans

Whether or not to consolidate payday loans is a question many people may have on their minds, especially if there are more than a few of these screaming high interest loans that are behind schedule in being paid back. Payday loan agreements are a very bad idea for those who need money to tie them over until the next pay check arrives. It's understandable that sudden emergencies do crop up all the time, whether it is a furnace motor, a well pump, new brakes for the car, a medical co pay or some other pressing issue. Since it is estimated that seventy percent of Americans actually live pay check to paycheck, the possibility of having any real savings to cover these pop up crises is negligible. Now some people have outside resources from which to borrow money such as parents, other relatives and perhaps even a few churches, but most people are probably surrounded by those who are in the same no dough boat. So there may be no other place for a father to go when the radiator starts leaking on the car and it needs a one hundred and fifty dollar repair and pay day is a week and a half away. The car is the only way to get to work so there is no choice but go down to the local predatory lending company known as a pay check advance store.

Once this cycle begins, the difficulty to break out of it begins in earnest. More everyday emergencies arise as they always do and it quickly becomes very difficult to extract one's self from the ever increasing black hole. As a result, the principle amounts of the paycheck advance lending agreements often never get repaid and then the expense skyrockets and the question of whether to consolidate payday loans becomes a real possibility. Paycheck advance companies have extraordinarily high interest rates. In many states across the country, an unpaid loan of this type, if not paid in a year will cost the borrower eleven hundred dollars! Can a person even imagine the stress and the anxiety caused by not being able to stop this freight train effect could have on a low income family trying to do the right thing but knowing they are just a victim?

So suppose this father, who has borrowed two hundred dollars to pay for the radiator must let the loan principle ride for several months. He has only been able to keep up with the costs of administering the loan, about thirty dollars each paycheck, but in three months time the loan is now at four hundred and fifty dollars. Sadly, his son has to have emergency surgery and out of pocket expenses are over a thousand dollars. He goes back to the payday lender for more money. The man gets five hundred dollars this time and then it must ride for several months also. Suddenly debt is over fifteen hundred dollars in just five months time and growing by the day. So to the stop the bleeding, the father decides that to consolidate payday loans is the best strategy. No one wants to be poor financially, but Jesus actually praised a certain kind of poverty when he declared, "Blessed are the poor in spirit, for theirs is the kingdom of heaven." (Matthew 5:3)

There is a very barbed wire that surrounds the decision to consolidate payday loans and that is the condition of the debtor. Since FICO scores are of no interest to payday lenders, it is not a stretch to say that those who use these predatory companies probably have very tattered credit scores. Many may be in the low five hundreds. They are not individuals who can go into a bank and get a home equity loan so they will have to get borrowed money at local loan companies or certain online lending companies that charge as much as thirty percent interest if they can even qualify for this high risk money. This becomes a very real conundrum for the people that are looking to consolidate payday loans are the ones who cannot in any shape or form afford either a high interest loan or another one being introduced into their monthly budget.

Credit counseling services might be a good alternative for those who are wishing to consolidate payday loans. But there is a gigantic cockroach in that ointment. These friendly, personal check into cash people won't offer any consolidate payday loans benefits to its customers. In other words, credit counseling services can often cut in half the interest on choking credit card accounts, but cannot offer the same services for those drowning from paycheck advance interest. So perhaps the only choice for a person wanting to escape such a toothy bear trap is to seek out a high interest unsecured loan.

However, before making such a drastic step to consolidate payday loans, the advice so many financial experts give is to seek out a wise person who is successful at running their own financial household or business. Listen to their advice closely and ask them to give ideas on different options. Perhaps out of that conversation can arise a new perspective that has never been considered before. The beginning of wisdom is the genuine admittance that one does not have all the answers and that giant blunders have been made. God is certainly longing to hear that admission from all of us.

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