How to Consolidate Payday Loans and Get Out of Debt?

payday loans

Personal loans are loans that give you the authority to use the money for any purpose you deem fit. You don’t have to restrict yourself to one expense only. However, loans like payday loans can be availed by anyone regardless of a poor credit history and so these loans tend to have higher interest rates.

Payday loans are short-term personal, unsecured loans which are mainly used to meet a sudden financial emergency or an expense like a home renovation or an auto repair, which was unforeseen and hence not a part of your original monthly budget. Payday loans have the power to be extremely helpful because you can pay for the immediate need and use a portion of your next payday cheque to finance this loan. If you pay it on time, you won’t feel the pinch. However, problems can arise if you delay the repayment. Various fees and interest charges along with the principal can soon turn into a large amount of debt.

You do have one way to end the debt issue altogether or at least control the rate at which it grows. Installment loans or term loans allow for fast and easy debt consolidation. Flex loans from Cashco Financial are loans which allow you to consolidate your debt. These loans not only have lower rates of interest but also have flexible payment terms. You can also choose the number of installments based on your specific situation or needs.

Cashco Flex Loans

A Cashco flex loan allows you to borrow up to $5000 and pay it back over 36 months. This is one of the few long-term loans which will actually help you to improve your credit score as this company informs credit rating bureaus about your bill payments on a regular basis. So, if you continue to pay the bills on time, you will slowly but surely see your credit score improve and this will give you a better chance with other essential loans like home loans or auto loans. You may be considering payday loans in Edmonton or other places in Canada but beware of the caveat that many companies are risky and can trap you under a heap of debt.

How to get out of payday debt?

  1. Debt consolidation loan or program: Many payday lenders or other lenders have special debt consolidation programs under which you can consolidate all your debt so that you have to pay bills for one loan only. Consolidating loans under one program usually brings down your interest and so you can pay off your debt quicker. Also, many companies start charging late fees, rollover fees and also transfer your file to debt collection agencies. These agencies then use various tactics to force you to settle the payments quickly. Debt consolidation saves you from all these menaces.
  2. Check the legality of the lender and the loan: If you feel that your lender is unduly and unethically pressurizing you to settle the debt, consult an attorney or a credit counselor who can help you to check and establish if the loan is legal and the lender has followed all the provincial and federal laws of Canada. If not, you can take legal action against them. Don’t budge under threatening calls. Don’t take them lightly also. Inform police and also write a formal letter to your lender as well as the debt collection agency to stop harassing you. Mention the telephone number(s) or email address at which you can be contacted. Clearly state that you don’t want them to disturb your relatives or your employer to pay the debt on your behalf. These communications can be used as documents in court.
  3. Use your Registered Retirement Savings Plan (RRSP) or other financial instruments to settle the loan: Rather than letting the debt to build up and become huge, it is better to nip it in the bud. So, even if you think that you will get a lower return on your investments, use one or more of them to settle your debts. If these are long-term investments, they won’t make much difference to your final return anyways. You can also use a line of credit or cash advance on your credit card although be warned that the rate of interest will be high.


Payday debt shouldn’t left alone for too long. Initiate a settlement plan, start a savings plan, take a long-term consolidation loan or look for additional means of income if you really want to be debt-free quickly.

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