Hello. Is it possible to consolidate payday loans in an unemployed person? I took three payday loans, and after that I was dismissed from work and I had nothing to pay them back, and I have unemployment benefit in the amount of $580 and I would like to consolidate these payday loans into one smaller installment, and the amount of these three payday loans is $1,400.
I have no idea how to get out of this difficult situation, and I do not hide that I care about paying off this debt. Please help.
Consolidation of payday loans for the unemployed
Hello, taking out loans and payday loans and losing your job is the darkest scenario possible. It is known that it is not always possible to predict job loss and impending financial problems.
That is why it is always worth being aware of getting into debt that the possibility of losing your job is a real threat and that we can quickly lose liquidity and fall into a financial hole, the hole from which in many cases it is very difficult to get out.
I know a lot of stories myself, where the loss of a job resulted in a complete cut of the income stream, because, for example, only one person worked in the family, so unpaid debts grew at the rate of a descending avalanche, causing huge problems and incurring additional costs (penalty interest, prompts) that rapidly increased debt whole family.
It is good that in your case the debt is only $1,400, not $14,000 or $140,000, because such debt is also possible.
Consolidation of payday loans
In your case, consolidation of payday loans would mean that you would have to take out a consolidation loan from a loan company or other financial institution that typically deals with debt relief.
The consolidation loan would amount to $1,400, and you would not have to pay 3 installments (each payday loan separately), but one installment, the installment loan installment.
Definitely the problem you will have to face is the lack of employment. Yes, unemployment benefit is some form of income, but unfortunately it is small and short-lived.
There is also the issue of your creditworthiness, I suspect that from the unemployment benefit you receive little stays, because you need to live and persist …
I suspect you would have to find a job to improve your credit standing to get a consolidation loan from a loan company.
Remember that the better your financial and material situation, the better you will be able to get a consolidation loan and the smaller APRC.
It is also worth thinking about securing a consolidation loan, such a loan with collateral is even better conditions for granting the loan itself, so for you collateral means lower consolidation costs.
The collateral for the consolidation loan may be:
- and even jewelry
Time and growing interest on payday loans
You must know that the longer you delay the payment of payday loans which appear somewhere in the BIK, the greater the losses you will incur, because you not only receive penalty interest, but also reminders to pay the payday loans, or later debt collection costs and bailiff costs.
All these costs put together can even multiply your current total debt. That’s why time plays a key role here, don’t forget about it!
Consolidation without checking BIK and KRD (without bases)
As you wrote yourself, you mean consolidation of payday loans that can be seen in BIK, this is not good news, because you must now focus on looking for a loan company that will not check the BIK or KRD register when making a decision to grant you a consolidation loan.
What I would like to emphasize again is that it is not worth to postpone paying off debts “at another time”, remember that every day and every month, you are charged criminal interest for failure to pay the debt.
Interest continually increases the amount of your total debt, and when there is a situation where the loan company refers the case to a debt collection company or bailiff, then you as the debtor incur even more costs, it is worth reading the entries:
- Who pays for debt collection costs?
- Who bears the enforcement costs?
Your debts for unpaid payday loans are really small ($1,400), but remember that your debt will increase systematically. Find a job as soon as possible to pay off payday loans and free yourself of debt once and for all.
I would also like to add that if you already have some employment, you do not have to look for a typical consolidation loan, all you have to do is pay back all three payday loans in small installments, as I wrote, the debt is really small (so far), so it will be even without consolidation. I wish you luck and keep my fingers crossed for getting out of debt quickly!