We think about it most often when we are struck by numerous financial obligations. While it is easy to get it done in the bank, the rules of the game are not fully defined in the case of loan companies. Consolidation of payday loans – today we are checking whether such a solution is possible in non-banking institutions.
Consolidation known from debt economics is a combination of liabilities held into one. We can use this solution when the total amount of monthly installments begins to threaten our financial stability. By granting us a consolidation loan, the bank does not give us money, but it regulates our liabilities. We, in turn, become debtors only to the financial institution that granted us such a loan.
Changing the creditor, however, is not the main goal of consolidation. This solution is all about reducing the monthly costs of servicing our debt – so that we can easily meet them. So we don’t pay several different installments anymore, but one – often much lower than before. Of course, this is associated with the extension of the loan period and the increase in the total cost of the loan – nevertheless, higher fees are spread over time, so our financial liquidity is in balance.
Fast and easy credit consolidation
Although the service called payday consolidation does not formally exist on the non-banking market, you can use at least two solutions that will have the same effect.
The first is a bank loan for any purpose. By making this commitment you can borrow money whatever you want and choose a longer loan period. Thanks to this, you will pay off all your payday loans on time and the capital received from the bank will be returned in low monthly installments.
The second solution is an installment non-bank loan. You can also borrow money to consolidate payday loans from lending companies with longer payments. As in the case of banks, also here with the money from the loan, you will pay off all payday loans, and with the installment lender, you set the repayment terms so that the monthly installment does not burden your home budget too much. Non-bank lenders usually do not ask for what purpose you need cash, so you will be able to use the funds you have received to pay the payday loans.
Loan consolidation is a phenomenon. So if you want to consolidate credit, you have to do it at Consolidation Now official website.
Forget about another payday loan!
When thinking about consolidating payday loans, never take a quick loan for this. Payday loans have a short payment period, so you can easily get into even more financial trouble. In your case, the only option is only loans with the option of repayment in installments – so look only for such obligations.
Is it worth consolidating payday loans?
Also, remember that consolidation of payday loans only makes sense if your financial situation allows you to pay back the loan taken out for this purpose regularly. If you know you can’t pay even the lowest monthly installment, it’s not worth the risk. Being in this position, think about other solutions, e.g. consumer bankruptcy. Only such an action will allow you to overcome debts and go straight.