Taking the advantage of payday loans might help an individual to deal with their emergency cash needs; nevertheless, if they obtain multiple payday loans and face difficulties to handle them, then they can end up owing a huge amount of debt. Luckily, by understanding the procedure of payday loan consolidation, you can become debt free by combining your cash advance loans into a single monthly payment.
Some Useful Steps For Payday Loan Consolidation
1) Work out your overall debt amount
You can use a payday loan calculator to determine the overall outstanding balance which you have to pay off. Understanding what you’re obliged to pay is the initial step to consolidation.
2) Call a payday loan consolidation company
You have to communicate with a company that offers payday loan consolidation services. Not only would they provide you consolidation services, but also would render debt counseling without cost. You can discuss your financial problems with a debt counselor.
The debt counselor, being an expert, can offer you the perfect plan to handle your finances and can also assist you to determine whether you require payday loan consolidation.
3) Lowering of Interest Rates
The consolidation company would negotiate with your payday lenders for securing cheaper interest rates on your payday loans. This makes it convenient for you to pay the principal balance together with the interest. One additional benefit is that your late fees might be entirely wiped out.
4) New Repayment Strategy
The payday loan consolidation company would also help you in settling on the maximum monthly installments for your payday loans that are manageable for you. The purpose is to assume a suitable strategy so that you can keep on paying the installment to eliminate your payday loan debt in a comparatively short time frame.
You can use a credit card at all times that does not ask for any yearly fee and offers a 0% introductory rate to pay off your loans. You would enjoy only one monthly payment and would pay a considerably smaller amount on interest payments.
Advantages of Payday Loan Consolidation
If you combine your payday loans, you receive a slew of advantages. For example, your interest rate is cut down, late fees are either waived off or lowered significantly and you make one payment rather than multiple payments.
When Can You Avail Loans for Payday Loan Consolidation?
Loans are there for consolidation of your payday loans but the availability is dependent on a number of elements. For example, the volume of your loan. If the amount of your loan is too high ($2,500 or over), then there is a chance that you might be refused for the loan. Nevertheless, if the amount of loan is less than $2,500, then you might be approved for consolidation.