Payday loans, also known as paycheck advance loans, are short-term loans accessible to both good and bad credit borrowers who need small amounts to settle emergency expenses that can’t wait till their next paycheck comes in. Although these bad credit-friendly loans are easily accessible, it comes with very high-interest rates and short-term repayment periods that may become difficult for some borrowers to pay off. Borrowers who have trouble paying can consolidate their debts to make them more manageable and easier to pay off without renewing. Here are the most popular ways of doing so;
How To Pay Off Multiple Payday Loans?
The first step to consolidating multiple payday loans into one is shopping around for a lender that offers debt consolidation loans or finding a financing option that makes this easy. Talking of an easy financing option, credit cards can be used to consolidate debts and is a choice option to consider if you have one open.
You may also consider getting a personal loan, and you can also submit a request to iPaydayLoans if you are looking for professional loan services with same-day approval. All you need to do is to fill out their loan request form, and you will be connected to reliable lenders within a few minutes. Lenders in their network will review your application, run only soft credit checks, and make a funding decision within hours. You should be funded as soon as the same or the following business day if approved.
The most important thing is keying with a lender that charges low-interest rates on their loans and can grant longer repayment terms. It’s best practice to work only with lenders that run soft credit checks. Hard credit checks can hurt your credit score. Other popular options are HELOCs and home equity loans. These require collateral and generally take longer to process. However, they are the cheapest overall.
Why Should I Perform Payday Loan Consolidation?
Essentially, payday loan consolidation is the process of using one larger loan or line of credit to pay off multiple short-term loans. The main objective of this is to simplify debts and make them more manageable to pay off.
Payday loan consolidation is worth considering if you are at risk of missing payment deadlines, your lender doesn’t allow deadline extensions, or you’ve exhausted the ‘grace period.’ Missing a payment deadline may mean paying late payment fees, which ultimately increases the total cost of the loan.
Worthy of mention is that this consolidation doesn’t save you from the heavy APRs on payday loans. Instead, it saves you from having to renew the loan or missing numerous payment deadlines.