Payday Loan Consolidation

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Payday loans are short-term loans that give you a small amount of cash with the agreement that you’ll pay it back at your next paycheck. Payday loans are an easy way to get cash fast, but they can quickly catch you in a cycle of debt.

After you get a payday loan, you’ll need to pay the amount you borrowed back on your repayment date, plus fees. If you can’t pay it all back, the payday loan company usually lets you roll over your loan into a new loan. They’ll also add more fees and excessive interest charges. Each rollover leads you deeper into debt that’s hard to pay off, even if you originally only borrowed a few hundred dollars.

How to Get Out of Payday Loans with Consolidation

Debt consolidation is a method of paying off debt by combining existing debts into one monthly payment. The goal is to make debt easier to manage so you can focus on paying it off. Consolidating payday loans can be a good option to get out of the payday loan cycle.

Payday Loan Consolidation Options

There are several methods to consolidate your payday loan debt. If you’re wondering how to get out of paying back payday loan debt, consider one of these options:

  • Consolidation Loans: This consolidation strategy requires you to take out a new personal loan from a lender, like your bank, to pay off the total amount of your payday loan(s). A personal loan usually has a much longer repayment period than a payday loan, so you won’t have to worry about rolling over your ongoing payday loan. However, you’ll still probably have to pay fees on a personal loan and you might end up paying a lot of interest over the life of the loan.
  • Debt Consolidation Company: This method involves working with a trustworthy debt consolidation company to consolidate your payday loans. An account is set up for you, into which you’ll deposit a monthly payment. While you’re making those deposits every month, a negotiator will contact your creditor and negotiate with them on your behalf. After negotiations, you should have a lower total debt amount (that’s called a “resolution amount”). When you’ve saved enough in your account to cover the resolution amount, you’ll use that money to pay off your debts.It’s important to find legitimate payday loan consolidation companies with plenty of reviews, such as Accredited Debt Relief, to avoid scams.

Advantages of Payday Loan Debt Consolidation

Consolidating your payday loans helps you pay off your debt and get out of the payday loan cycle. Instead of renewing your payday loan and adding more fees every couple of weeks, consolidation helps you start making real progress toward paying it off.

It’s easier to manage your debt when you’re making just one payment a month. Additionally, paying off payday loans each time you get your paycheck usually leaves you with little to no money for your other needs. Consolidated debt payments are the same each month so you can create a budget that leaves money for other things.

Is Consolidation Right for You?

Payday loan debt consolidation isn’t for everyone. You might be able to pay off your payday loans without consolidating. Reasons you might want to consider consolidating your payday loan debt include:

  • You’re unsure you’ll ever be able to pay off the total amount you owe.
  • You’re considering bankruptcy to get out of debt.
  • You continue to be trapped in the payday loan cycle and want help getting out.

Tips for Lowering Your Payday Loans

Working with a BBB accredited business that can help with your payday loan consolidation can be a helpful way to reduce the amount of debt you have. Accredited Debt Relief has been BBB accredited with an A+ rating since 2014. Our team of experienced debt consolidation professionals will listen to your payday loan situation to suggest a method that’s best for you.

As you decide what debt consolidation service could be right for you, consider these other tips to help reduce your payday loans.

  • Prioritize Debt Payments: If you have multiple types of debt along with payday loan debt, it can help to focus on the debt that is costing you the most money in fees and interest. This is often your payday loan(s). Focusing all of your efforts to pay off your payday loan can help you get rid of them faster, leaving you with the money to then work on other debts.
  • Ask for Extended Payments: It never hurts to ask your payday lender if you can have an extended repayment period instead of taking out a new loan.

Accredited Debt Relief can help you pay off your debt quickly, so you can finally take the first step toward financial freedom. Get a free consultation today!

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