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Consolidating Your Payday Loans and Other Alternatives

There may be times when we find ourselves at the end of the cliff when it comes to our finances. Whether it is a constant scenario or something that may happen only once, there may be times when we find ourselves searching for quick, immediate solutions, such as a payday loan.

Payday loans are quick loans that need to be repaid within 14 days, often offered by smaller companies or individuals. The beauty of these loans is that they are released almost immediately. However, it is important to note that they are high in interest rates and often have hidden fees and charges.

It is not uncommon for people to find themselves in a flurry of payday loans. They may take out several loans to pay off one big deal and constantly only pay off the interest fees to extend payment terms. This could harm one’s finances more than they think.

This is why some people decide to consolidate their loans instead. In this article, we will talk about debt consolidation and other alternatives you may have to pay off your payday loans.

Debt Consolidation

Debt consolidation is the practice of taking out one big loan to pay off other smaller loans. This may sound ridiculous because who would want to take out another loan on top of their loans, but it is a practice more common than one would think.

The purpose of debt consolidation is that it makes it easier to pay off just one creditor with one interest rate than multiple. It also helps one manage their loan easier and readjust their finances. It is all about managing your loan easily.

However, this means the ability to take out a big loan, which is often a bank loan. If you have payday loans, chances are that you may not have a good credit score to take out a bank loan. If you do and you qualify, we recommend that you do so. If you don’t, then you may have other options, listed below.

Payday Alternative Loans (PALs)

Credit unions do offer an alternative loan to payday loans, referred to as payday alternative loans or PALs. These PALs are useful because they are very similar to payday loans, but are more flexible. Additionally, they would count toward your credit score once paid back.

However, the problem with this is that you need to be a member of these credit unions that offer them. So, if you aren’t, then this is not an option for you.

Debt Management Plan (DMP)

In this option, you work with a counselor for your finances. They will handle your money and pay off creditors for you, while also negotiating with them. This allows you to just put your finances with them and have them handle the rest for you.

However, this will affect your credit score. This will impact your ability to borrow in the future, and even your chances of owning a house or a car.

Filing Bankruptcy

Depending on how bad your loan is, you may have the option to file for bankruptcy. This could remove all your loans or possibly open up options for you to pay only in partial amounts.

This option is suggested as a last resort. It will hurt your credit score greatly and will affect your ability to own property in the future. It could also affect your option to open bank accounts or even have a mobile phone plan.


Having loans is not something to be ashamed of. However, they can be a lot of trouble to manage and deal with. If you have a lot of unpaid payday loans, use this article as a guide to see what options you may have.

If you need personal loans in Pelham, AL, we have what you need. We at When Ends Don’t Meet understand the financial struggles you may have. As such, we offer flexible, installment loans to meet your needs. Contact us today to apply for a loan.

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