Payday Loan Consolidation is the act of taking a new loan or line of credit in order to pay off several payday loans, effectively breaking the vicious cycle of re-borrowing high-interest money. This process is also often referred to as Payday Loan Consolidation or Payday Advance Loan Consolidation. It is becoming more common among borrowers who are experiencing financial difficulties, and may also be a viable option when a borrower has many payday advance loans from different companies, all of which have high interest rates. For example, many payday advance lenders offer higher interest rates compared to banks, credit unions, or other financial institutions. Source – https://www.nationalpaydayrelief.com/payday-loan-consolidation/
Are You Making These Payday Loan Consolidation Mistakes?
You may consolidate payday loan consolidation with a payday loan itself, such as a personal loan. In this case, you would receive a fixed-rate personal loan that could be used to repay payday loans already outstanding, saving you time and money by paying only one loan at a much lower rate of interest. You may also opt to consolidate with your personal asset. If you own a home or other property, you may consider taking out a second mortgage to pay-off your high-interest debts. You would use your second mortgage to take care of the new loan, and would then be left making only one payment per month to one lender, avoiding the various fees associated with each loan.
Regardless of which option you select, it is important to note that prequalifying for a payday loan consolidation loan is an absolute must! If you do not prequalify, then you will not be able to get started on the process, and will likely end up falling back into the same frustrating situation that you were in before. When applying for a personal or home equity loan, be sure to include information about any existing debt you may have. The more current the debt, the easier it will be for you to get started and get your debt paid off quickly.