Payday loan consolidation is essentially the procedure of taking out another loan or line of credit in order to pay off several payday loans and thereby breaking the vicious cycle of repeatedly re-borrowing higher-interest borrowed debt. You may consolidate payday loans either with a payday loan itself or a second payday loan, such as a paycheck advance or savings account advance. Be aware that consolidating payday loan debts into one single consolidated payday loan will increase your monthly payment and interest rate, as well as the time it takes for the check to clear the bank. Consolidate payday loans to eliminate excessive debt by paying one consolidated, lower-interest payment at a more reasonable rate.
Is it the Best Way to Consolidate Payday Loans?
You may also consolidate payday loans with credit cards, if you already have balances on those accounts. Credit cards are often at the mercy of every increasing transaction and interest. If you don’t consolidate your credit cards, you’ll be paying enormous fees for insufficient funds and missed payments. Take the same amount of money you are currently paying and apply it to each of your credit cards, in addition to each of your payday loan debts. By consolidating your debt, you’ll have significantly reduced interest payments for each of the cards, allowing you to eliminate up to four credit card balances.
If you want to know the best way to consolidate payday loans, take some action. Get online and find a reputable company. Choose the one that offers the lowest-rate, flexible terms and a fair balance transfer fee. When you consolidate, don’t make additional commitments for borrows after your consolidation. The best way to learn more about your financial situation and how to manage it is to explore your options with a free online financial management tool.