Payday loan consolidation is an increasingly popular way to get out from under high-interest, long-term payday loans. Payday loans are small, short-term loans that are intended to help pay for unexpected or upcoming expenses. Payday lenders provide a debit card or online account that borrowers use to make their scheduled payments. Payday loans, however, are also popular for use to help borrowers who do not qualify for conventional loans, such as those with bad credit or with poor credit ratings.
Payday lenders often charge exorbitant interest rates and high APRs for payday loans often used for unexpected expenses. Payday loan borrowers may find themselves paying for these costs for years, if not decades. Payday loan debt consolidation is a process that allows borrowers to combine all of their payday loans into one. Payday loan consolidation can often reduce the total cost of taking out the payday loans, allowing borrowers to pay less interest charges over the life of the loans.
Payday loan consolidation is an option available to borrowers on this website who have taken out multiple payday loans and who find themselves paying multiple bills every month. Payday lenders typically do not offer personal loans at affordable interest rates. Borrowers can seek out a payday loan consolidation company instead to consolidate all their payday loans into one. Some companies offer this service for free.
Personal loan consolidation is a process in which all of a borrower's payday loan debts are combined into one debt with a single payment. Personal loan consolidation requires that borrowers set up an account with the company in which they are getting the payday loan. In most cases, personal loans are not eligible for consolidation. Most personal loan consolidation companies also will not provide borrowers with a lower interest rate than the one offered on their original payday loans. Personal loan consolidation is often available for people who are behind on their payments on at least two payday loans.
To get started with a payday loan consolidation program, borrowers must first complete a prequalification form. To complete the prequalification form, borrowers need to provide information about their income and current debt levels. The loan company will then assess the borrowers' financial situation to determine if they qualify for consolidating their debt. If the company determines that the borrowers qualify, then they will provide them with an application to fill out and then send it to their lenders.
Another way to get started with a payday loan relief program is to apply for a debt consolidation loan. Some lenders will offer borrowers an unsecured personal loan to use as collateral for a secured debt consolidation loan. Unsecured personal loans come at a higher rate of interest because there is no need to verify the identity of the borrower. A secured loan will require borrowers to make sure that they have a decent credit score in order to be approved. For more information, click here: https://en.wikipedia.org/wiki/Loan.
