Payday Loan Consolidation – What Is It?

Payday Loan Consolidation is the process of combining many short term cash advance loans together in one, usually low-interest, loan. Payday loans are aimed at consumers who require fast cash without the risk of a credit check. However, getting out of a payday loan often can be hard as they come with very high annual percentage rates (APSRs) and relatively short repayment periods. Payday loan consolidations help borrowers consolidate multiple high-interest payday loan balances into a single low-interest loan, such as a payday loan or other cash alternative loan. Consolidating these loans allows the borrower to simplify his or her repayment process by paying off the debts all at once, taking away the need to make multiple payments. This link – nationalpaydayrelief.com/payday-loan-consolidation/

Building Relationships With Payday Loan Consolidation

Borrowers who are behind on their bills, have an unusual salary situation, military personnel or senior citizens, or disabled homeowners can benefit from payday loan consolidation. Consolidating the debt consolidates the debt into one monthly payment, generally at a lower interest rate than the individual payday loan. The borrower then chooses a suitable repayment plan for his or her situation. Typically the borrower will choose a repayment plan that is at least 2% lower than the combined amount of the individual payday loan balances. Payday Loan Consolidation helps reduce financial stress and provides valuable financial management tools.

Prior to applying for a payday loan consolidation, it’s important to meet with a reputable lender and obtain a clear explanation of the terms and benefits of the program. Many lenders have online application forms, but it may be worth applying to an actual lender, rather than filling out the online application form. Lenders want to be able to see the credit score that a borrower has in order to determine whether he or she would qualify for a debt consolidation loan. Once all of the necessary paperwork has been submitted to a particular lender, the borrower can expect to hear from the lender within one business day. It’s then up to the borrower to decide whether or not he or she wishes to proceed with the loan application.