Consolidating Payday Loans: Three Things You Need to Know First

Consolidating payday loans helps eliminate your costly payday loans by coming up with a loan where you make monthly payments that you can afford. If your payday loans are piling up and you feel like there’s no help, talk to a specialist about a loan consolidation program today.

Take a Close Look at Your Financial Situation

Before committing to any payday loan debt consolidation program, you need to get to know your financial situation. Calculate all of your income and get a total for how much you receive each month. It can be helpful to use the amount you receive after taxes rather than before taxes. Next, total up your expenses, including utilities, groceries, rent/mortgage, car payments, insurances, etc. Now, compare your expenses to your income and see how much you have leftover for your payday loan payment. This should be your goal loan payment amount.

Read Up on the Company First

After you’ve narrowed down your potential lender, visit the Better Business Bureau’s website to see if the company is accredited. Also, see if there are open complaints about the company. You’ll get great insight into how well the company responds to consumer complaints or problems. Know that not every complaint is going to be valid. Some consumers will simply be unhappy, no matter how hard the company tries to please them. After reading up on the company, use your own judgment to decide if a lender is right for you.

Compare Offers

Do not feel that you must accept the very first debt consolidation loan offer you receive. Companies are going to compete for your business, so you can use that to your advantage. By comparing fees, rates, and payment terms, you’ll be able to find a loan that allows you to pay off the debt without eating up all of your monthly paycheck.

Consolidating payday loans can be very helpful in reducing your financial stress. As long as you make a wise decision and avoid rushing anything, you’ll end up with a repayment plan you can afford.