Is taking out a payday loan the only solution to paying off credit card debt?

As people are going haywire about the lack of funds and their soaring debt obligations, they're desperately looking for options that can help them get back a firm grip on their finances and lead a debt free life. However, the most probable reason as to why most debtors are not being able to repay their debt obligations is that either they don't have a poor credit score or they can't wait for a week or two for taking out a single traditional loan that can help them with consolidation. Nothing can be worse than leaving your debts unattended as they carry outrageously high interest rates that keep multiplying with every late and missed payment. So what are you supposed to do during such a situation? Should you immediately take out a payday loan or wait for taking out a debt consolidation loan? Read on to know which would be a better option for you.

Taking out a payday loan when you can't repay your credit card debts?

When you've racked up a huge amount on your multiple credit cards, you must be looking for a loan that can immediately relieve your financial worries. But do you have a good credit score? It is a fact not unknown to the debtors that no lender will give you a loan without checking your credit score. Well, if you have a tarnished credit score but you want to take out a loan, you may get yourself a payday loan. Here are some reasons to apply today for a payday loan.

• They are short term loans that need to be repaid in full on your next payday. You don't have to stay in debt for a longer period of time if you take out such loans.
• The lender will approve your loan amount within minutes and you can get access to the loan amount within 24 hours and therefore you can easily repay your credit cards within a day or two.
• The lender will not check anything other than the income before lending you the loan amount as their main concern is whether or not you'll be able to repay the loan on the next payday. Hence bad credit borrowers can even take out payday loans.

When should you take out a debt consolidation loan to repay your credit card debts?

If you haven't missed too many payments and if you want to take out a long term loan so that you can repay throughout an extended period of time, you may take out a debt consolidation loan. Shop around among different lenders so that you can take out the best loan with an affordable rate and terms. Here are some benefits that you may reap.

• You can use the proceeds of the consolidation loan to repay your credit card lenders soon as you receive the loan amount in your bank account.
• You can repay the consolidation loan in single and affordable monthly payments.
• You'll be able to save money every month as the interest rate on the debt consolidation loan will be much lower than what you were paying on your credit cards.
• By repaying your credit card debt through a consolidation loan, you can even improve your credit score in the long run.

Therefore, instead of sitting back and wondering about the option to choose to repay your credit card debt, take out a payday loan or a consolidation loan, whichever suits your needs and budget. Manage your finances and repay the loan on time to avoid a hit on your credit score.