Secured loan good idea or bad?

I have too many payday loans out and want to get rid of them. I was looking into getting a secured loan and using my car which is payed off as collateral. i don't have the best credit either. Do you think this is a good idea to get myself out of the payday loan hole and build my credit at the same time.

Secured loan good idea or bad?

Luck509,

By all means, stop using payday loans, or you will never get out of debt!

Please be very careful about who you share your financial future with.

My immediate suggestion would be for you to source a local credit union and have a visit with a loan officer to help clean things up. If they can't provide a loan, they can direct your efforts to qualify at a later point. Perhaps you might have to start with an unsecured loan, but build your credit rating. For now at least, deal only with people in your home area that have an office that you can march into and ask questions. As you become more sophisticated, the rest of the world will open for you and you will know better who to trust.

Go to your town or local college library and find some books on investing and start educating yourself about how things work. There are many great books that can help you. Educate yourself so that you can take care of yourself.

Learn to save. Save up enough to take care of the sort things that would now send you to a payday loan, and everything will start to smooth out nicely. Emergences will happen, so prepare for them in advance through savings. It's really hard at first, you're not going to be used to it, but you can do it. While it might seem hard at first, the first time you realized that you dealt with a problem that would have swamped you before will become a real eye opener, and you will find a new confidence and enthusiasm for making this work.

You don't have to have a huge income to start laying a secure foundation. Most of what you will need is self discipline and the courage to walk away from things that you want but don't need. Best of luck.