Payday Loan Consolidation: What You Need To Know
Payday loans are a great way to get quick cash in an emergency, but what happens when you find yourself with multiple payday loans that keep piling up? You may be considering getting a Payday Loan Consolidation.
If this interests you, then we have some information for you so you can make an informed decision. Continue reading below and learn about the benefits of consolidating your payday loans!
Common misconceptions about consolidation
The first thing you need to understand is that there are some things about consolidation people commonly misunderstand. If you can clear up these misconceptions, it will be much easier for you to make an informed decision.
- Let’s start with the biggest misconception: consolidating all of your payday loans into one loan and paying off everything at once (paying interest on top of what you owe). This may seem like a great idea because it means only having one monthly payment instead of multiple charges each month.
However, this could end up costing more money in the long run if not done correctly! You have to remember that when taking out a Payday Loan Consolidation, most companies require borrowers to take out another small loan called “deferment.”
Deferment allows you to pay a little bit of the loan every month, and then when it is paid off, that money will go towards paying back your consolidation. You can’t just stop paying on this new consolidation loan like you would if consolidating all payday loans into one big loan!
Also, starting deferment requires fees (which may be included in your monthly payment), which means even more interest over time!
- Secondly: Payday Loan Consolidators – Not All Are Created Equal
If we told you there was an easy way for borrowers to consolidate their multiple payday loans with virtually no work required from them and at a lower rate than any provider they’ve ever used before…wouldn’t that sound too good to be true?
Well, unfortunately, this is what multiple payday loan consolidators would like you to believe. However, several things can affect your consolidation rate, and it all depends on the quality of service offered by these companies.
There are many different types of Payday Loan Consolidation companies out there, including direct lenders (companies who offer loans themselves), third party agencies, banks/credit unions/other financial institutions, etc.; each with their own set of pros and cons depending on the type of borrower they’re targeting!
Some may have better rates than others or specialize in specific niches such as military personnel or immigrants…the list goes on, so don’t assume every company offers the same thing just because they say they do!
The most crucial factor to consider when consolidating your payday loans is whether or not you can trust this company and be confident that they will take care of you.
We know it may seem like a tall order to find such an easy-to-work-with company, but we’re here to help! Our team at Payday Loan Consolidation Careers has hand-selected our network partners based on their ability to provide customers with the best customer service and rates in the industry (we even offer free quotes compared to other top providers out there).
If you’d like more information about these companies before deciding where to consolidate your payday loan(s), feel free to contact us today; we’ll get back to you within 24 hours!
As mentioned: if appropriately done, consolidation can be a great way to save money in the long run. However, it’s important not to make assumptions or jump into anything without being fully informed about everything involved!
Important things you should know before making your decision on whether or not to consolidate your payday loan.
First of all: consolidation does not mean making one payment and paying it off.
It means taking out a new loan (deferment) to pay for your existing loans until they are paid off, then that money will go towards the deferment loan. When starting deferment, you have fees associated with this which can add up quickly in interest charges.
There is no such thing as consolidating multiple payday loans into one big payday loan; separate companies specialize in different niches like military personnel and immigrants, among others, so don’t assume every company offers the same service or rates just because they say they do!
Lastly: trustworthiness matters when choosing where to consolidate your payday loans because there are many scammers out there who prey on those looking for help (and you’re not looking for that).
What are the alternatives to getting a new loan for emergencies or unexpected expenses?
There are several alternatives to getting a new loan for emergencies or unexpected expenses, including:
- Applying for an installment loan (if you can qualify)
- Borrowing from friends and family (with their permission, of course)
- Using your credit card (only if you’ve exhausted all other options; most people who end up in payday loans have maxed out their credit cards already)
You could also try asking your employer about any emergency funds they may offer employees. If none apply, consider opening a line of credit with a local bank where the interest is likely to be lower than what payday lenders charge.
This option works best when used as a last resort once everything else has been tried! There’s never been a better time to consolidate those multiple payday loans!