Can you consolidate payday loans?
Sometimes, but not always.
It is really until payday that the lender could allow their loans to be consolidated through a debt management program. Some online payday loan providers enable their investments to be combined; Others do not. So if you applied for a loan of this type online, provide the name of each lender to your certified credit counselor and they can tell you if your investments can be consolidated or not.
Most payday lenders who work “in the real world” (not on the internet), do not allow debt consolidation. So if you went into a credit bureau and took out money, then you may not be able to consolidate those debts. That does not mean that a debt management program cannot help you.
Your certified credit counselor is trained to assess your situation by helping you find the solution or a combination of solutions that will help you get out of debt. You may be able to consolidate some of your payday loans, along with your credit cards and overdue medical bills, which would reduce the amount of money you are using on those debts. That can give you more money to get finally to be regularized on payday loans that cannot be consolidated.
That is why you must speak with a certified credit counselor. It is the only way you can count on an expert to assess your situation, at no cost, to find the right way out of debt.
What about cash advances from credit cards? Payday loans are not the only fast and risky solution, which can get you in trouble when you are in debt. Cash advances on your credit cards can cause the same amount of problems.
Advancing cash from a credit card
A cash advance is when you go to an ATM to get some money from your open credit line. Sometimes people feel that, just because it is an ATM, it is as harmless as a debit card. This is not like this.
Credit cards have quite high interest rates compared to other types of loans, even in standard transactions. Cash advances usually make those interest rates look tiny. Also if you have excellent credit, it is very likely that compared to the annual percentage rates (APR) of cash advances are just under 30%. If your loan is not that good, the damage is even worse.
So you are raising money at a very high interest rate. That means that debt proliferates with additional interest. Your debts have inflated, getting out of control faster than the mortgage can pay – especially if the money is already low, so you have been making minimum payments.
Of course, cash advances have an advantage over payday loans, since you can consolidate those cash advances from your credit cards, along with your other credit card debts.
For more about payday loandebt or consolidating payday loan you can visit online.