One of the most grueling things about the current economic climate is that many people are buried in debt and struggling to find relief. It’s hard to get ahead when you’re facing a double whammy. Not only are you buried in debt, but also, on top of it all, you have monthly bills and other such financial obligations piling up.
But fear not! There is an easy way out of your predicament. If you want to consolidate your payday loans, do so with this company that will allow for a lower interest rate but still provides support from their team members when necessary. Read on to find out how to solve your financial problems and enjoy life again by consolidating your payday loans.
Understanding The Concept of Loan Consolidation
If you’re overwhelmed by your high-interest payday loans, you may need to consolidate them to make your finances manageable. Loan consolidation is taking out a large loan that’s not as high interest as the others and then paying off all the other loans. For example, let’s say you have two payday loans: one for $500 and one for $1,000.
The monthly interest payments on these two loans are very substantial at $102 and $166, respectively, a month. However, if you took out a single loan for $5,000 and paid the entire interest off with this amount, you’d save about $363 a month. The low Payday Loans Rates are exactly why many seek consolidation loans.
Benefits of Loan Consolidation
There are several benefits to consolidating your payday loans into one big loan you may not be aware of. First, the overall interest rate will be much lower than each payday loan. Second, you’ll get a lower monthly payment and enjoy more financial control. Third, your debt will be easier to manage, and you can stay on track with your budget. There are other benefits to consolidating your payday loans as well, such as:
- You won’t fall into the payday debt trap by taking out more loans.
- Your credit score may rise slightly as once you pay off these high-interest loans, it will reflect positively on your credit score and give you a fresh start in rebuilding your credit.
- You can get help from a financial advisor or credit counselor to make your new loan payments on time every month.
Additionally, consolidating means, you will pay less money for your loans. This is because your monthly payment will be lower, and you will be paying off all high Payday Loans Rates with one loan.
How To Apply For Payday Loan Consolidation?
Consolidating your payday loans is a very straightforward process. The following steps should help you get started:
- First, you must find an online consolidation company that provides payday loans.
- Once you find a suitable one, you can request a loan for which the interest rate is much lower than your current loans.
- Once the requested loan is approved and sent to your mailbox, you need to start making payments using your bank account.
- All your loans consolidated into one loan will include making one payment to the consolidator every month.
Have a financial advisor or a credit counselor look at your new loan and make sure it’s set up properly. These consolidation companies are dedicated to providing people with a way to consolidate their high-interest payday loans.
Tips to Avoid Payday Loan Debts
Once you start paying off your payday loans with a loan consolidation company, don’t stop there. Instead, take it one step further and reduce or eliminate your other debts. Getting rid of all high-interest debt will help you achieve financial freedom and peace of mind. Here are some tips to help you achieve this goal:
- Start living within your means by cutting down on your spending. However, if it’s truly necessary to purchase something, then make sure it’s affordable rather than one that costs 10x what you were comfortable spending before going over budget.
- Be very selective about the things that you buy. Take the time to compare a lot of different prices online and in stores as well. Look for sales, coupons, and comparison shopping deals.
- Pay your bills on time, so you don’t get hit with late fees or have your credit score suffer.
- Consider working an extra job or picking up additional hours at your current job if you have time and the capability to do so. This extra income will help pay off debt and finance your future goals.
Using these tips should help anyone who’s heavily in debt find relief from their financial woes even after consolidating their payday loans into one big loan. So many people struggle daily, fighting through a sea of financial issues. Consolidating your payday loans is the best thing you can do to save yourself from the burden of payday loan debts.