Amanda's Note: This article was provided by an online contact.
Payday loan traps are dangerous and should be best left alone. Unfortunately, people always fall short of some cash. While a good financial planning would allow you to meet contingencies, it happens that you don’t plan that way or despite your best planning, you may still need more cash. What do you do?
You go for payday loans which are easily available across Canada. According to Dave Ramsey, a recent study carried out by Pew Charitable Trusts in the US and Canada has shown that almost 12 million North Americans take payday loans each year.
The figure in Canada may not be much better. The reason is that there are people who use payday loans not just for meeting exigencies but even for paying off utility bills. And one payday loan can soon lead to another and very soon you can be looking at a mountain of bills in addition to your credit card bills and other long term loans.
If you think that you are getting battered by payday loans, consult a credit counselor and see if she can provide you with tips that help. You may also negotiate a repayment plan with your lender or if there is a provision, you can go for a debt consolidation or debt settlement plan as well.
While all these may lower your credit score, these are often the only way to end the loan. If you can be a bit more patient, you can look at a term loan that can help you to pay off the payday loans. The payday loans issued by Cashco Financial cannot be however paid off with proceeds from other loans and cannot be consolidated. But there are many more payday loans which can be.
There are quite a few long term and flexible loan options in Canada. Although, your credit history and records will be thoroughly checked before a loan is issued in your name, some lenders are also willing to lend people with less than ideal credit scores or those who are bad credits.
UrLoan is a flexible debt consolidation loan that was launched by CreditLoans Canada Financial Inc and provides loans to people who are trapped in the vicious cycle of payday loan payments. The repayment terms can vary from 6 to 36 months and you can get a loan between $10000 and $15000. Even with little or zero credit history, you are eligible to apply for urLoan. The loan can be approved within a single working day.
Cashco also offers a very flexible loan called a Flex Loan where you may be allowed to borrow up to $5000 and the horizon could go up to 36 terms. Moreover, only soft credit checks are conducted prior to the lending. Although, you may not be able to use this directly to pay off payday loans, you can use your other means and resources to pay off the payday loans and then take this loan for your long term needs.
Benefit of term loan
One big benefit is that even if you have a skewed credit score due to your failure to pay payday loans on multiple occasions, these term loans will not only help you with finances but also help you to rebuild your credit reputation if you continue to pay the bills on time, which is easier since the terms of payment are far more favorable.
So, try to reduce your payday loans by making off the smallest first and then attacking the next biggest and so on but remember to pay the minimum due amount on each bill. However, look for these long term debt consolidation loans which can pay off the payday loans and improve your finances.