Choosing Between Debt Consolidation and Payday Loans

You have probably wondered if payday loans are any different to debt consolidation loans and if not, what the similarities between the two are.

People who generally opt for a Payday Loan are not too different to those seeking debt consolidation loans in that they are both are looking for relief from the high interest credit repayments that they have become used too each month, or may need emergency cash to pay off their debts before their credit is damagedâ€¦but this is where the similarities end!

Unfortunately, credit has been made all too easy to obtain and as a result of this people have amassed frighteningly large amounts of debt that they just canâ€™t cope with, or afford any more. In fact I would suspect that in the last month you will have had at least one promotional offer in your mailbox proclaiming the credit deal of the century but with the harsh details of this deal will be hidden in the fine print that the promoter knows only too well, many will not bother to read.

It is this type of promotion that puts many of us into high interest debt that is so difficult to get out of and that forces us into taking action to try and rectify the situation.

The obvious way to counter high interest debt is to replace it with low interest debt. There is no miracle cure to free yourself from debt overnight but there are ways to lessen its impact and make it more affordable so it eases the burden on your finances. One such way of doing so is the use of debt consolidation loans.

By paying off all of your high interest debt with a low interest debt consolidation loan you will both lower your monthly payments and make the management of your debt a whole lot easier.

Now, if we take a look at payday loans or cash advance loans used for the same purpose the fundamentals are pretty much the same except for two major factors. The first, and this is why the use of these types of financial products has become popular, is the speed at which your application is processed and approved. You will have the money you require very quickly indeedâ€¦but, more importantly, the second, and the not so attractive factor is that these loans are often at a very high interest rate, the very thing that you should be aiming to move away from.

It is understandable why some people would opt for payday loans, nobody wants to fall behind on their payments and risk their credit rating being damaged, and the speed at which that problem could be avoided is apparent with these types of product; but for a long term and much more financially beneficial resolve, a debt consolidation loan, secured or otherwise, is a far better option.

Do you have personal debt issues? Are you considering consolidating your debt? You REALLY need to know what debt consolidation options are available to you so you can make th right decision. For information on debt consolidation options and many other debt related issues go to creditcardconsolidationloanssite.com

by Daniel Major