Payday loan debt consolidation and payday loan relief programs are very common ways to deal with outstanding payday loan debts. All three terms are used interchangeably; however, they do have different ways in which they accomplish their goals. Each method is described below and how it can assist you break free from payday loans long term.
Payday Loan Consolidation Strategies For Beginners
An installment loan helps you consolidate multiple payday loan debts into one monthly payment. By consolidating your outstanding loans, you are able to obtain better terms for your monthly payments. This also helps you reduce the amount of interest that you pay on your loans, since your payment now covers the entire amount of the loan. Some of the advantages of this method are that your monthly payments are more manageable and that your late fees and finance charges are reduced. Your credit rating may not be negatively affected and you will receive a lower interest rate by consolidating your loans rather than extending the terms of your existing loans, which may result in you paying a higher interest rate than if you continued to make your payments as they were.
Another of the payday loan relief programs available to help you manage outstanding payday loans is to refinance your current loans into one total amount with a longer term. You may be stuck in a financial situation where you have payday loans with extended terms, such as 30 days. Refinancing allows you to take all of those payday loans, roll them into one total amount, and then roll them into another loan, or even just extend the terms of one of your existing loans, again with the same total amount and longer term. By doing this, you are able to pay off your payday loan debt much faster.