Payday loans are small and short term loans. You can get $500 after the loan is approved. You have to pay back this loan on your next payday. If you cannot pay it back at the time, you have a pay a penalty for late payment, and conditions can be worse. Is there any solution to avoid being defaulted? The answer is yes!
You can easily consolidate payday loans. Payday loan consolidation is a good option if you cannot pay back your payday loan on time. Consolidation will merge all the loans into a single lump sum amount with small monthly installments. You can quickly pay the installments after consolidation because of the small amount each month. Paying back the tenure of consolidated loans can be extended up to 30 years.
Pros:
Small Installments
After consolidation, the debt will be divided into minimal installments, which are easy to pay. Also, there is no chance of missing monthly payments. It will be helpful in the management of monthly expenditures.
Easy To Avail
The process of consolidation is easy to avail of because it doesn’t require much detail about borrowers. You can quickly get the loan and pay off your payday loan on time.
Flexible Repayment Tenure
The repayment time of a consolidated loan can be extended up to 30 years. You can fix the monthly installment of your choice, which is right for you. You will not receive any calls for repayments by agencies.
Cons:
High-Interest Loan
The interest rates of consolidated loans are higher than payday loans, which means you have to pay more. Due to increased interest, the total amount of debt can be immense.
No Discounts
You will not get any discount on interest rates on consolidated loans, and you will also lose a chance of loan forgiveness by the government.
Bad Credit Score
Consolidation can damage your credit score badly if you miss an installment. If you don’t pay an installment on time, you will be charged with a hefty penalty, and you have to pay it immediately.
Is consolidation a good option?
Payday loan consolidation makes lives easy. It will combine all of your debts into a single loan with low monthly installments, so they are easy to pay. Managing many loans at the same time can be very difficult. Consolidation will reduce your stress level in the right way because it allows you to choose a flexible repayment period. If you need help with Payday Loan Debt Consolidation contact Solid Ground Financial!
