Payday loan consolidation simply means borrowing cash to pay off several payday loans, ideally breaking the vicious cycle of repeatedly re-borrowing higher-interest debt from the same place. You could seek payday loan consolidation either through a payday loan itself or option payday loan. With Solid Ground Financial you can consolidate your multiple payday loan debts into one. You do this by getting a one-time low-cost loan that covers the total amount owed on all your existing payday advance loans. Then you make one low monthly payment for the combined total of all your lenders.
This is a very useful way to manage your finances as it reduces the temptation to overspend on certain purchases. For example, a borrower who has multiple credit cards and pays off each one late will incur large charges on his or her credit card account. When the total payments are added up over a period of time, a borrower's credit score will suffer. By taking out a payday loan consolidation, the borrower is able to rid himself or herself of this credit card debt while effectively reducing the risk to his or her credit score.
Since payday loan consolidation works through a single loan provider, interest rates are generally lower. This is because the entire amount owed is consolidated into one payment instead of being paid out in several monthly installments. However, there are some borrowers who might have to sacrifice lower annual percentage rates (APRs) in exchange for getting the benefit of one lower monthly installment. It all depends on the borrower, and it's up to the lending company to determine what they think the appropriate APR for a borrower. Whatever they decide, however, most borrowers will certainly find their new monthly payments more than affordable.
The primary reason behind the rising popularity of payday loan consolidation is the ease of acquiring the service. Since online lenders usually offer competitive rates and terms, borrowers can oftentimes get great service with minimal effort. This is especially true if the borrower possesses good credit and has no significant debt amount to clear. In fact, many such services are offered at no cost through solidgroundfinancial.org, which makes them even more attractive. This is also one of the reasons why such services are favored by online payday loan lenders, who don't need to bear the high operating costs typically associated with brick-and-mortar lenders.
With all the benefits that payday loan consolidation offers, there is also a dark side. One of these is debt settlement. While settlement definitely allows a borrower to eliminate a portion of his or her debt, it should be noted that this type of action can only be utilized once the original debthammer has been paid off. Once the original lender has been paid off completely, a borrower cannot move forward with the settlement again without the authorization and consent of the original debt hammer.
So, should you use payday loan consolidation as a debt solution? The answer really depends on your current financial situation. If you currently own a car and have sufficient monthly income to make both your car payment and your monthly installments on your personal loan, a payday loan debt consolidation company may very well be able to help you eliminate some of your debt. Just make sure that you keep up with your payments on time, because you do not want to accrue any more debt! Check out for more info on this link: https://simple.wikipedia.org/wiki/Loan.
