Debt Consolidation

Four strategies to know for payday loan cosolidation

i need help with payday loans? There are people who use payday loan consolidation. 

What loan do you want to cancel before?

As you can imagine, this situation can not bring you any good. If you are one of them, you must know that you can break a spear for your financial health and put an end to this problem, but you have to react as soon as possible. As soon as you become aware of what your debts cost you (not only in economic but also emotional terms) and that you adopt the firm decision to end them, you can get out of that situation. Everything happens because you make a plan based on reducing your expenses and increasing your income. From there, decide which loan you want to cancel before and which one next.

Strategy 1. The one with the highest interest rate.

The higher the interest rate you pay for the loan, the more money you will have to pay in total for it. Do not lose sight of the concepts of TAE and TIN, review the fine print of all your debts and start by eliminating the one with the highest interest rate. In general, credit cards have the highest interests in the market.

If you choose this strategy, you have to consider one very important thing. Almost all loans are governed by the French depreciation system, which causes the interest payment to be concentrated in the first years of the debt and gradually reduced later, to the point that in recent years almost everything you pay is capital.

Strategy 2. The least amount.

If you want a quick morale, order the debts depending on the amount of each payment pending and first cancel the amount that is less, regardless of everything else. If you finish soon or relatively soon with that debt, you will feel happy and that will encourage you to continue canceling more debts.

Strategy 3. The one with fewer commissions.

If you are thinking about amortizing debt, you should know that some financial institutions charge interest for it, whether it is a partial amortization or a total amortization. Therefore, another valid strategy is to first cancel those debts whose commissions are lower. In this way, when you have to cancel the loans with higher commissions, the amount to be paid will be lower and, therefore, also the commissions to be paid.

Strategy 4. The happiest you feel.

If there is a loan to which you have a special hobby, go for it first. For example, if the entity that has granted you forces you to have the payroll registered there and you want to go to another with better conditions, first attack that debt and feel free to decide what to do with your money.

In short, four methods that lead to the same end, which is none other than canceling your debts. Depending on your financial and personal situation you will prefer one or the other. Do you tell us which one?