Payday Loan Consolidation Vs Unsecured Debt Counseling

Payday Loans is designed for customers who need fast money with no check required. Payday loans, also known as cash advances, are typically targeted toward consumers with poor or bad credit. Often, getting out of a payday loan is difficult as they come with high-rate, triple-digit APRs and very short, limited repayment terms. Payday loan consolidations help borrowers combine several high-interest payday loans to a single, lower-interest loan, such as a payday advance loan or payday personal loan. Payday Loan Consolidation can help you save money on interest costs, yet allow you to pay off your debt more quickly. Source –

Get Out of the Payday Loan Trap

Payday Loan Consolidation works by linking your checking account to your loan. Payday lenders usually provide a link on their homepage so you can quickly apply, and many will let you know within minutes whether or not you have been approved. The company that linking your checking account to its loans will charge you an application fee, but it is usually well worth the cost as these payday lenders are in business to make money, and they do this by making very few loans.

The downside to Payday Loan Consolidation is that you will have bad credit. You will have more debt than you had on your revolving credit line. This may be okay if you can repay your debts quickly, but if you cannot manage to, you should consider using unsecured debt counseling instead. Unsecured debt counseling provides the same financial services, except for a lack of credit checks. If you have bad credit, an unsecured debt counseling service will probably be able to get you started on the road to better credit in just a few weeks. Once you are enrolled in a good program, it is unlikely you will need to borrow money from a payday loan consolidation company again.

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