The Facts about Consolidating Payday Loans

 

If you’re like thousands of other Americans, you may find yourself in the unfortunate predicament of having taken out multiple high-interest payday loans while getting hit with penalties and other fees for not making all your payments on time.

You may have also been forced to take out even more loans to pay off existing ones but still can’t seem to get out of the trap you currently in. If this describes your current situation, you should consider consolidating your payday loans. In this article, we’ll talk about what payday consolidation is and how to go about it.

Payday loan consolidation simply offers a way by which all your existing loans are combined into a new loan under new terms. Instead of making multiple payments to all your different lenders, you make a single, consolidated payment towards the new loan each month at a much-reduced interest rate. Your monthly payments are typically going to be much smaller and more manageable. You can choose to consolidate on your own or, if your situation is more complicated, through a specialized debt consolidation company. Regardless of how you consolidate, you need to decide whether you are going to consolidate your debt using a secured loan (where you have to put up something as collateral like your home) or an unsecured loan.

Secured loans have the advantage of offering you a much-reduced interest rate, but if you have good credit, you could get a decent rate even for an unsecured loan.

For more about payday loan or payday loan consolidation you can visit online experts.

 

The criteria of different payday loan companies are

 

  1. You must have a job or there should be a regular source of income.
  2. You should have a Checking A/c in a bank.
  3. You should be a US citizen.
  4. You should be at least 18 years of age.
  5. Your monthly income should be at least $1000 Per Month.

Best application time of payday loan:-

If you apply for the loan from Monday to Thursday, you will get the loan on the next working day, i.e. Tuesday to Friday. If you apply for the loan on Friday, then you will get the loan on the next Monday, and if you apply on Saturday or Sunday, you will get the loan on Tuesday.

So the best time to apply for the loan is Monday to Thursday.

When will you get the money?

As the process is very simple to get the loan amount, in general, you will get your loan amount within 24 hours of application. The company will check your documents and verify your data with an automated system named as VPN Based software, and then approve your loan. The entire process of verification of your identity and depositing the money to your Checking A/c takes 24 hours of time. There are some companies that will deposit the loan amount in less than 24 hours.

Costs of a payday loan:-

Usually, a payday loan company charges 15 to 30 USD per $100 borrowed. So, if you borrow $100, you will have to pay 115 to 130 USD on the very next payday. The APR of payday loan cash advance interest boosts up to 391%.

Payday loan can be great helper on the emergency time. But it can be so risky in some situation. If you have caught in payday trap you can seek help for your payday consolidation from a good payday loan consolidation company. They can solve your problem easily.