Payday Loans, also known as cash advances, is targeted at consumers that need quick cash with little to no credit check. Payday loans are similar to online payday loans, but can carry higher interest rates. Getting out of a payday loan is sometimes difficult as they come with high triple-digit annual percent rates (APSRs) and very short repayment periods. Payday loan consolidation can help borrowers consolidate multiple high-interest payday loans into a single, lower-interest loan, such as a payday advance loan or cash advance alternative loan. Resource – nationalpaydayrelief.com/payday-loan-consolidation/
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Payday Loan Consolidation can be done through many lending institutions including banks, credit unions and non-traditional financial companies such as payday loan companies. The process is simple. Borrowers apply for a loan at one of the institutions with the lowest APRs. Borrowers then decide which loan they want to consolidate and sign the documents provided. The lender then transfers the borrowers’ payment information to the lender with the lowest APR. In most cases, the interest due on the combined loans will be lower than what is owed on the individual loans.
Payday Loan Consolidation does not eliminate payday loans altogether. Some borrowers may continue to pay installments on previous payday loans. However, many payday loan consolidators allow borrowers to combine all payday loans into one personal loan with a shorter repayment period. Payday loan consolidation may not be right for all borrowers. Before deciding if this loan option is right for you, borrowers should research the interest rates, fees, and terms of each lending institution.