What To Do If You CanÆt Pay Back Your Loan

Although it can be hard to face, not being able to pay off your loan debt is something that many people have to come to terms with. If you are in this situation, then it is important that you try and sort it out as soon as possible. The longer you leave the problem, the worse it will get. If you cannot pay back your loan and need help, then here are some tips to help you on the road to recovery.

Admit defeat

If you really are struggling and cannot make your repayments, it will only harm you to carry on struggling. You will have to pay late fees or extra payments, and your debts will get worse. Do not try and cover your loan debts with other types of debt like credit cards, as you are just making the problem worse. Admit that you are struggling and start taking steps to change the situation right away.

Contact your lender

The first thing to do if you are having problems is to contact your lender and try to work out some sort of plan. Although lenders are a business, they are often sympathetic to your situation and might be able to help by deferring or temporarily stopping payments. Having your payments stopped for a few months might be all that you need to get back on track. If you can show your lender that you can solve the problems, they should be able to help you.

Pay what you can

Even if you cannot pay the full amount back each month, you should always try and pay what you can back. The debt you have is not going to go away, so paying back what you can will still help to reduce the problem, even if it is not the full amount you should be paying back. Lenders will look more favourably on you if you are seen trying to pay back as much as you can.

Seek advice

If your problems persist, then seek some independent financial advice to try and help you through the problem. There is free advice available, and it could help you to learn where you are making mistakes that you could change in order to pay back more of your loan amount.

If the worst happens

If the worst happens are you are forced to sell your home or are taken to court, try and deal with the situation properly. Although this is obviously a very hard time for you, make sure you keep a level head, and respond to all paperwork and requests promptly and accurately. Although the situation may seem bad now, if it helps you to become free of debt it will be worth it in the long-term. If you cannot pay back your loan, then seek advice and help, and always pay as much as you can do each month.

Peter Kenny is a writer for thriftyscot.co.uk Please visit us at Loans and Poor Credit Loans Visit http://www.thriftyscot.co.uk

[tags]Personal loans,uk,secured,loans,debt,consolidation,compare,apr[/tags]

Guaranteed Personal Loan

Guaranteed personal loans are a wonderful option and can be utilized for a variety of reasons. With a wide range of lenders competing today, a borrower has a wider choice of options available. Here is an overview about the type of loans, their uses, benefits, drawbacks and finer points.

Uses of guaranteed personal loans

Guaranteed personal loans can be used for a variety of reasons. This can include home improvements, purchasing furniture, dream holidays, to pay off high interest rate loans and credit cards, debt consolidation, medical expenses, starting up business or pretty much any other reasons you can imagine as long as it's legal! These can also be used to fill the gaps between paydays with necessary funds. These can be obtained from banks, specialist loan companies, credit card companies and other financial institutions. These are easier to obtain if you have collateral to secure them against.

Requirements to qualify for a guaranteed personal loan

While it is easy to qualify for and obtain a guaranteed personal loan, lenders make the process tougher by often asking for unnecessary documentation. However the important documentation that is often required includes credit reports, proof of identity, proof of residence, salary statements, bank statements, your attest salary slip and proof of your duration of employment. Employment information is sought because a guaranteed personal loan requires the borrower to have a certain income level per month. These loans also require a good credit rating for the borrower to gain approval.

The market

Today's market for loans and the loans industry has evolved to a large extent. Over a decade ago it would not have been as easy to obtain a guaranteed personal loan. However, today the market has changed with increasing numbers of players and options. With the Internet entering the scene, applying for such loans and processing them has become much faster. Different providers continue to offer lucrative options to tantalize and encourage customers to place their business with them.

While this creates a happy scenario for prospective borrowers, it may be wise to remember that the cheapest loan is not always the best. Consider the loan provider and their reputation in the market before deciding to apply for the loan. Read the small print carefully and look out for the interest rate, pre payment penalties and delayed payment penalties if any. Moneyeverything.com offers comprehensive loan comparison service with options for those who are on the lookout for a good loan. Visit www.moneyeverything.com and check out loan details with advice and answers to your questions.

I write articles on Loans. For more details please visit http://www.moneyeverything.com

[tags]Guaranteed personal loans, personal loans, loans[/tags]

Funding A Business With A Bad Credit History

Most businesses have a time in their life when they need funds in order to grow. What do you do, however, when you need the money to grow, but you also have bad credit? Many banks will not give a loan under such circumstances. It is considered a potentially bad risk. Today, there are actually a number of places where you can still get that loan you need. Here are a few things you can do to fund your business venture.

Starting A Business

If you are just starting a new business, as an entrepreneur, then getting that new loan is tied to your own credit ratings. If you have bad credit, the easiest way to get the loan you need is to get a secured loan. This means that you put up something as collateral for the financing. The only thing is, you want to be quite sure that you can pay off the loan, since your house (or car) is probably tied to it.

Higher Interest

An unsecured loan is also a possibility, but you probably will not be able to get as much (probably about half as much, or less) as with a secured loan. Loan agencies look at a credit rating as a reference of your likelihood to pay. If you show them some collateral, this will make them pretty happy. If you do not, you will not come away with as much money. But in either case, a bad credit rating will get you a much higher interest rate.

Loans Available

Although your bank probably will not give you the loan, there are many other agencies available that will. It will be easiest to find them through the Internet, and where you also have the convenience of applying online.

Do Some Comparison Shopping

You should apply for your business loan at a Website where you can get several offers from the same application. This will definitely simplify things. Otherwise, you will need to be filling out many forms - many times. It would be a real good idea to apply at more than one Website, too. Then, after you get the various offers, you need to sit down and take some time to determine which one you really want, and which one is most suitable to your financial situation and goals. By looking around, and not being in such a hurry, you probably can find a good loan with some rather decent interest rates and lower payments, too.

Check The Institutions Credibility

Before you sign the dotted line though, because you are so happy that they will fund your new business, you need to check out the agency to make sure it is a legitimate business. There is a whole lot of fraud going on these days and you don't want it to further effect your credit rating.

Build Your Credit Rating

The best loans, of course, come when you have a good credit rating. You may want to consider the possibility of taking out a small loan first, and pay it off quickly in order to start repairing that bad rating. Keep this loan small because it will have high interest, start to repair your rating, and then go for the bigger loan that has a lower level of interest. There are also other things you can do, too, to get your rating in a good condition.

Joe Kenny writes for the Personal Loans Store, offering UK loans and also information on business loans in the UK.
Visit Today: http://www.ukpersonalloanstore.co.uk

[tags]business, credit, history, funding, bad, adverse, poor, ccj, secured, loan, bank, apply[/tags]

Some Loan Application Tips

When applying for a loan, one may face the dilemma of determining just how much money one intends to borrow. Applying for a loan is an act that needed planning. It is never done spontaneously.

One of the preparations that a loan applicant must do is to determine just how much he intends to borrow from the lending company. In determining how much a loan applicant must borrow, here are some ideas that will be helpful.

Budgeting Wisely

To budget wisely is not just about doing the math right or choosing the best deals. Budgeting wisely involves knowing the purpose of the personal loan. The purpose of the loan will give an idea about what will be the expenses that will be encountered. And once the borrower is aware of all the expenses that he will be facing, he can borrow enough funds for it. Borrowing money which is less than what is needed has no effect at all.

For example, a person needed £10,000 for a trip. If he borrows only three quarters of it, £7,500, then he will never be able to conduct the trip. The insufficient loaned amount will go to another purpose which is other than the trip. Therefore, the borrower must draw up a budget before applying for a loan.

If the personal loan is for taking the family to a holiday vacation, then the borrower must budget the travelling expenses such as the airfare (or train or bus or boat). Then, he should include other related expenses such as travel insurance, car rental, hotel accommodations, communication expenses, food expenses, and money to spend in buying souvenirs.

Borrow Extra Money for Unexpected Events

After the borrower has budgeted appropriately, he should think about borrowing extra money. The extra amount will be for expenses that are unexpected or unforeseen. This is because no matter how intensive the budgeting is, there will situations that bring about more expenses.

For example, a borrower applied for a loan which is intended for making home improvements, such as constructing an additional room. But during the period of construction, the borrower realizes that the prices of construction materials were underestimated. This will seriously affect the home improvement. Then, the borrower will also find aspects in the house that needed to be fixed. This will entail expenses.

Borrow Extra Money to Save Money

This loan application tip sounds contradictory. But the borrower must realize that loans for smaller amounts are charged with higher interest rates. The loans for larger amounts are charged with lower interest rates. But should the person do with the extra money. This extra money should be saved in a savings account with high interests. This will help the borrower pay off the large loan.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of UK Personal Secured Loans who help homeowners find the best available loans via the http://www.uk-personal-secured-loans.com website.

[tags]loan, loan application[/tags]

What You Can Do To Improve Your Credit Score

It is hard to watch television these days without hearing about credit scores. If you are not looking to get a loan or credit card, you may be wandering whether or not they are important. Your credit score is important, regardless of whether or not you plan on applying for a credit card or loan. In this article I will explain what a credit score is and why it is important.

What Is A Credit Score?

Your credit score will determine whether or not you'll be approved for a mortgage loan, and how high your interest rate will be. Your credit score will also determine the cost of your car insurance. Even certain jobs, which you apply for, will require you to have good credit. Having a low score will make things much more expensive, and you may find that some companies won't hire you. The easiest way to get a good score is to make sure you're responsible with making your payments on time. It is also important to understand what is used to calculate the score.

Calculating Your Total

The type of different loans you have makes up about 10% of the score. If you don't have an established credit history, the number of different accounts you have will be considered. Your payment history makes up 35% of your credit score. The number of different accounts you make payments on is considered, as well as number of late or missed payments you have. Any liens, bankruptcies, or judgments will be reviewed, and this information will be used to factor in your score. Services such as furniture rentals and car loans are included as well as credit cards.

The total amount owed makes up about 30% of your credit score. The number of accounts you have and the amounts you owe on all of them are reviewed. The closer you are to maximizing out your loans, the more likely it is that your credit score will be lower. How much you have paid back on your loans is also taken into consideration. The age of your credit history makes up about 15% of your credit score. If you have a long credit history your score will be higher if you don't have any negative marks in the past. The last factor that makes up your credit score is called new credit.

New Agreements

New credit refers to the number of new loans you have opened recently, and makes up about 10% of your credit score. The number of request you've made for credit cards or loans is also computed. Now that you know all of the things that are used to calculate your score, what can you do to improve it?

What You Can Do To Improve

One of the things you can do is make sure all of your bills are paid on time. If you are too busy to make sure your bills are paid on time, set up automatic payments so that the money is debited from your account on the day it is due. You also want to make sure you don't open too many accounts within a short period of time. It is also important to keep your balance low in proportion to the total amount of credit available on the loan. You should owe 25% less than the total available credit on your loan or credit card.

It is also better to pay off your credit card instead of moving over the balance to a card that has a lower interest rate. Constantly moving around your balances can cause your score to become lower, because the total amount you owe could fluctuate if you close certain accounts.

Joe Kenny writes for the credit card comparison and information site http://www.cardguide.co.uk, visit them today for more credit card articles.

[tags]credit, score, calculate, help, improve, rating, check, loan, cards, agreement, companies[/tags]

How To Get A Quick Secured Loan

So you've gathered all your thoughts and decided you need a quick secured loan. For many reasons you've resolved that the time and circumstances are right for you and your partner. You might feel you need a loft conversion or the world cruise you have always promised yourself. But once this decision has been reached there's quite a bit of research to be done: where exactly do you apply for this loan? That is precisely what this feature is here to help you sort out.

Certainly one of the most important things is have you done all your sums? This may sound an unsubtle point, but before committing yourself and your family to your quick secured loan you must review your family funds. Could you afford the payments and how could such protection leave you by way of the money you had remaining available to you each month or week.

Surely the big question is bound to follow whether to use a bank or a broker? You may want to think about if you would prefer a quick secured loan via your bank or from an alternative source like a specialist brokerage. The particular reason of asking a bank for a loan is that you ordinarily know precisely what interest rate you will be paying and you may be friendly with the staff at the bank. But there is a common misconception that your bank will be always able to offer the most inexpensive financial deal which nobody else can compete with. In fact that's usually not the case at all.

Bear in mind that a bank is always tied to itself, by definition. They have only one institution from which to find their supply of finance: their own capital. The independent agent would be able to refer to a large number of sources of finance. In addition to that, the independent brokerage can additionally use their own understanding and match the preferred lender for your own situation. You will see the pros and cons of brokers it comes to searching for the ideal quick secured loan for you and your partner.

Also be aware that the major financial institutions are increasingly responsive to warnings about rising levels of debt. According to CreditAction.org.uk 'At the close of 2005 the entire United Kingdom personal debt was £1,158bn. Total secured supply of finance on homes in December 2005 amounted to £965.2bn. This has increased 10.4% in the preceding year.' This is while the median United Kingdom domestic family financial deficit is £7,786, and excludes mortgage loans.

Details about your credit history will almost always be looked into whenever you make an application for any type of quick secured loan, so you may expect this to be studied in some detail. If you are curious as to what your own credit history contains you are lawfully allowed to query it. You may write to Experian for a copy of your credit record, available for a small fee. Equifax is another company which will provide a similar service.

The predominant condition of secured finance, of course, is that it is tied to your property, much like a mortgage. If anything were to happen to endanger the payments on the loan then you stand in danger of losing your home. The law obliges all lenders of these loans (and their agents) to exhibit such protection warning prominently on all their sales brochures.

You should additionally ask your lender about protection cover in conjunction with your quick secured loan. If you are in employment then you should also consider such protection as a short spell of illness may incapacitate you for a while, or you could even become unemployed. If you work for yourself there is a much diminished chance of redundancy happening of course, but you may still become ill. Some other types of insurance include industry-specific injury and insurance for specific outgoings like your own mortgage.

So the best of luck with your quick secured loan. With a little armchair research you should be able to find the one that's right for you.

Gordon Goodfellow is an Internet marketer and technologist. He has a website which excels in providing speedy online loans. See the blog post for speedy secured loans.

[tags]quick secured loan, speedy secured loan, loft conversion, world cruise, a bank or a broker, inexpens[/tags]

Should You Get A Payday Loan

Payday loans are becoming increasingly popular and the industry is attracting alot of attention. Payday loans are cash advance loans that consumers can get, until they are compensated on payday. An example of a payday loan transaction is, a consumer gives their payday loan lender $110 for borrowing $100. After the consumer gets their pay check, they pay the lender back for the principal amount of $100.

The reason payday loans are attracting attention is that they are offered at high interest rates. Why are they offered at high interest rates? Let's examine the loan process.

1. A typical bricks and mortar bank will never loan you up to $1,500 in 24 hours. The barrage of paperwork that you would have to complete would take more than 24 hours.

2. The requirements for taking a payday loan is minimal. You need a job and a bank account. That's it. Most banks will require that you produce evidence of assets in order to extend you a personal loan.

3. No credit checks. There are no inquiries against your credit file. This means that the lender is taking a risk. Your credit score could be 450 and you can still get a payday loan.

4. Faxless payday loan lenders will even process your payday loan request without any hardcopy paper work. No faxing documents back and forth. Everything is done online.

So the answer to the question is "it depends". If you need cash in a hurry and you cannot borrow it from friends and family, a payday loan is a flexible, accessible option. If you have assets such as a home, you can consider refinancing your home mortgage.

Access the list of lenders, who specialize in faxless payday loans at http://www.poorcreditgenie.com

[tags]faxless payday loans, no fax payday loans, payday loans[/tags]

Online Sources Of A Low Rate Personal Loan

Like other loans, finding a low rate personal loan is as easy as a click of your mouse. It is likely that there is not one lender who does not have a website and offer online loans. After all, this is the 21st century, and borrowers are looking for an easy way to transact all of their financial business. With the convenience also comes the need for some precautions as well.

Know the lender

When you are applying for a low rate personal loan online, make certain you know the lender. What we mean by this know that you are going to a true site, and avoid clicking on any links that you receive in email, commonly known as phishing sites. In order to avoid doing that, know the site you want to visit and key the address into your browser rather than clicking on links. This assures that you are going to the lender's real site and not a mirror site where your information will be collected and used either to commit identity theft or to obtain all your financial information and use it to obtain credit in your name.

Be aware of secured sites

In most cases, financial sites are secured sites and are noted as such by the presence of a closed lock at the bottom of the web page. If you are applying for a low rate personal loan online, and you do not see the lock at the bottom, do not put any personal information on that site. If you are interested in applying with that particular lender, check the site for either a phone number or an email and communicate with the lender that way. Putting personal information on unsecured sites opens the potential for others to view the information and use it for their own interests.

Only provide pertinent information

When filling out information for a low rate personal loan online, do not offer information that is not asked. For one thing, unless you have looked at your credit report recently and know exactly what is on it, you may be giving the lender information that they would not otherwise know. This is especially important if it's an explanation for a negative item that you think may be there. It's much better to put the explanation in your credit file than to automatically tell a lender. In addition, in some areas, different credit bureaus provide information for different regions, and you may be giving information that is on a credit bureau file in another region because of the location of the creditor.

Have all information available

When you sit down to fill out the application, be sure to have everything in front of you that you will need. This not only saves time, but also saves you the potential risk of the site locking you out or logging you off while you go look for additional information. Secured sites customarily time out after so many minutes of inactivity, and if you're looking for information during that time, you may have to start the process over when you return. It also prevents anyone who is close to you computer from seeing what you are doing.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

[tags]low rate personal loan, personal loan[/tags]

Eliminating The Barriers Through Adverse Credit Secured Loan

Adverse credit secured loan has been especially designed for those homeowners who have bad credit history. It is generally seen that the people are denied loan just due to their poor credit score. But, now this will not happen as adverse credit secured loan will provide financial assistance to all those with poor credit score and who are willing to place collateral against the loan.

Adverse credit secured loan is similar to other initial secured loan in the financial market. But, the only difference is that the adverse credit secured loan carries comparatively high rate of interest. But, adverse credit secured loan gives the person an opportunity to improve his credit score by making timely repayments. So, that in future he can also avail secured loan on competitive rates.

Adverse credit secured loan is a multipurpose loan which can be used for any personal purpose that is:

•Buying a car
•Buying house
•Consolidating debts
•Business purpose
•Holidaying
•Wedding etc.

Financial market is full of lenders offering adverse credit secured loan but finding the most appropriate and best suited loan offer is not an easy task. Lots of comparison and research is needed in order to search the best deal. Comparison is done through loan quotes, which is provided by the lender at free of cost. Loan quote is the brief of the cost involved in the loan deal. And at last that offer must be accepted which involve minimal cost. The person must not forget to consider all the terms and conditions of the loan deal.

The amount which the person can borrow in adverse credit secured loan, basically depends upon the equity in the collateral being placed. In other words, more equity in the collateral allows the person to borrow large amount with comparatively low interest and vice versa. The reason for this is, that large amount of equity makes the lender feel secure against any non repayment of loan. In order words, if somehow the person fails to make timely repayments or misses any repayment, in such case the lender can seize or sell the collateral in order to realize his sum of money. Not only the seizing of the collateral takes place but the person also gets a tag of bad credit which further worsens up the credit situation. So, the person should always try to make timely and duly repayment in order to improve his credit score.

Anton Gabriel is the author of this article. He aims to inform common people of the several issues involved in Adverse Credit History Loans and mortgages through his articles. To find Adverse credit secured loan, unsecured loans, tenant loans adverse credit, tenant loans, bad credit loans, home owner loans visit http://www.adversecredithistoryloans.org.uk/

[tags]Adverse credit secured loan, unsecured loans, tenant loans adverse credit[/tags]

Solving The Scarcity Of Money

Ask any economist and they'll tell you: money is scarce. That's why it's so popular. When they say "scarce" they don't mean that there's too little money in the world, they just mean that the ratio of people who want it and people who have it is quite large. If money weren't a scarce commodity, it would sure be a different world!

So if money is so scarce, how do you get the things you want and need? What if you want that nice sports car? Or a boat? Or a house? Or an addition on your house?

In fact, maybe you find that your income is just enough to make ends meet, with barely any extra left over to put away for a rainy day. If that's you, you might want to consider getting a UK secured loan to help you get the things you want and need. That way, you'll still be able to enjoy the things you want and you'll have a low monthly payment to pay it back, so you can start enjoying it right away!

An unsecured loan is a loan that relies only on your credit rating to determine whether or not a lending institute will give you money. These types of loans will often not give you a lot of money and they will charge high interest and have shorter repayment periods.

However a secured loan may be a better option. And if you want that boat, fancy car, or a new roof on your home, a secured loan may be the thing you need. A secured loan is a loan that has some kind of security against it. That means you have some asset that allows you to promise the lending institution some kind of guarantee. If you cannot make the payment, the lending institute may take your asset as an alternative form of repayment. Because this kind of loan is less risky than an unsecured loan, lending agencies are often far more flexible with you. They'll give you more money at a better rate of interest and give you longer to pay it back!

Look around your life and determine what kind of assets you have that will allow you to get a loan. Do you a car? A house? Some stock market certificates? Some jewelry? Whatever it might be, you may find a lending agency who is willing to work with you based on those assets as a guarantee for a secured loan.

So if you're looking to get something nice for yourself, like that boat or new car or new roof, you should consider getting a secured loan to help you. Many people are choosing to go that route because our world doesn't pay us what we're worth! So instead of putting off your pleasure for later (and you know that it may never happen), go out and apply for a loan. There are many companies available online who are eager to do business with you today!

Jeff Lakie is the owner of http://used-auto-loan.co.uk providing Uk homeowners with a free loan quote service. Visit us today for a free no obligation quote.

[tags]loans, uk finance[/tags]

Do Away With Financial Emergencies - Avail Payday Advance Loan

Life is never smooth. You can face a financial emergency anytime anywhere. To cope up with these unexpected situations, you should have a solution beforehand. But if you do not have a solution just ask for payday advance loans which will provide you with quick and fast money to deal with urgent cash need.

Payday advance loans are basically short term loans which offer you loans to meet your unexpected financial emergency. With these loans you can easily pay unexpected medical bills, electricity bills, or any other expense for which you cannot wait.

Payday advance loans are called so because they are offered against a post dated check paid in advance to the lender. This check has the amount which you will be paying when the loan term ends. The check also serves as collateral against the loan amount. When the repayment date comes, the lender automatically gets the required amount by depositing this check in the bank.

With a payday advance loan you can get a loan amount ranging from £200-£1,500. The repayment term is usually between 1 week and a month. Interest rates usually depend on the amount you take and on the repayment term.

A payday advance loan is offered mainly through online lending as such a speed cannot be offered by regular offline lenders. All you need to first of all select a suitable lender according to your requirements. Once you find the appropriate lender, the rest of the work becomes quite easy. The next step will be to fill an online application form which will require some details about your employment, income, identity, residential proof etc. After you submit the form, the loan will be quickly transferred into your bank account.

In order to get a payday advance loan, you need to fulfill certain conditions. They are:

-You should be a UK citizen with above 18 years of age
-You should be a regular employee of a company
-Your minimum salary should be £1,000 per month
-You should have a UK bank account.

If you feel you fulfill all these conditions you can easily apply and avail payday advance loans.

You need not worry at all if you have a bad credit history. You can avail payday advance loans even if you have a credit record of arrears, defaults, bankruptcy, CCJ, late payments etc. Since these loans are made available in such a short time that there is no scope to run a credit check. Hence these loans are available to all types of credit holders.

So the next time to face an emergency, go straight to payday advance loan and get a quick and convenient solution.

Tim Kelly is an expert in finance having completed her LLM in Finance (Master of Laws in Finance) from Institute for Law and Finance at Frankfurt University. She is currently working with BestPaydayLoans as a financial advisor. To find payday loans, cash advance payday loan, quick payday loan, no fax payday loan, online payday loans, payday advance loans in UK that best site's you need visit http://www.bestpaydayloans.co.uk

[tags]payday loans, cash advance payday loan, quick payday loan, no fax payday loan, online payday loans[/tags]

How To Get Out From Under Too Many Payday Loans

Although payday loans are excellent ways to cover for those unexpected bills that pop up in our daily lives at the worst possible times, people can often be sucked in to costly, high interest loans quickly and easily. The best way to counteract a problem with payday loans is to curb the debt before it begins.

As a good rule of thumb, you should only use a payday loan as a last resort. Also, only take out a large enough amount of money to cover your expenses or tide you over until your paycheck arrives. The vicious circle continues as individuals who rely upon their monthly check find it taken by the loan company to repay the payday loan.

If you find yourself with several payday loans and a mountain of looming interest, know that there are options. Many individuals are quickly overwhelmed with the situation and hastily file for bankruptcy. This should be your absolute last option, but do not panic—there are many more suitable options.

First and foremost, stop taking out payday loans. As soon as you can break the cycle, then you can begin to dig yourself out of debt. Also, before you agree to any loan, research the loan rates and fees. Check out Web sites like BasicLingo.com for a comprehensive look at competitive rates.

Second, evaluate your situation. Whichever debt has the higher interest payment should be paid off first. If possible, consider taking out a larger loan with a lower interest rate to completely repay your payday loans. This way, you will only have one low payment each month.

Third, even as you are paying off your loans, you should continue to save money. Many individuals neglect this important step and find themselves without a "rainy day fund" to use in case of emergency. Instead of turning to a payday loan to cover unexpected fees, consider creating a savings account for those events that seem to happen at the most inopportune time.

Larry Mitchell is a San Francisco based author.

[tags]payday loans, payday advance, cash advance, debt consolidation, emergency loan, short term loan[/tags]