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Posted in Paying Your Bills
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Pandorasbox00

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Can I consolidate my payday loans to a lower monthly payment without the outrageous fees?
Every month I'm trapped with this vicious payday loan cycle of needing to get a new loan because I have to pay the outrageous interest they charge. I have a few installment loans from payday lenders that charge extremely high interest rates and I want to get out of this trap.

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Budget, plan, and know your exspenses

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There's no magic solution for short term, high interest loans.  In short, you have to eat the losses.  But in most cases you can manage your way out the cycle a little at a time.  Basically just take less and less each loan until you can eat the final payment without getting another loan again. 

After that, I suggest putting the same amount you were paying in interest aside until you can put it into a secured card.  That would allow you just use the card for longer terms and better interest rates while building your credit with monthly payments instead.

The answer is short and not very easy to do I know, but managing your credit is the same way, you have to be willing to work for it in terms of what you can handle.  Sticking to budgets and knowing what your real expenses are, is the key to good credit and avoiding debt.

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