Payday loans are aimed at consumers who need instant money without the hassle of credit checks. Getting out of such a payday loan quickly can however be difficult as they come with high triple-digit APRs and usually short to medium-term repayment terms. Some payday loan consolidation companies offer consumers a way to consolidate their payday loan into one low monthly payment. If you are considering consolidating your payday loans, be sure that it is the right move for you and your situation. Here are a few questions to ask before consolidating your payday loan:
Is refinancing really better for me? Do I benefit from having my payday loans all in one location instead of several different personal loans? Can I benefit from lower interest rates? Do I have other options for getting a lower interest rate?
Some people get payday loans because they don’t want to handle cash transactions on their own, such as at their bank. Others use them when they don’t have access to a personal loan. However, most borrowers are not aware that some payday loans are refinanced into personal loans. Most payday loan consolidation companies only work with traditional lenders to provide refinancing, not with all of the smaller, personal lending institutions. However, many consumers find that they do enjoy financial relief by consolidating their payday loans.