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Consolidating your payday loan and help getting back on your feet

Payday loans are designed to give a person fast and easy cash and while they serve a very good purpose when used correctly, it is all too easy to take out more loans than you can really afford. You are then faced with not being able to pay back your loans on the agreed day, leading to late-payment charges and your debt increasing. If you have got more than one payday loan and need help reducing and clearing your debt, than you should consider debt consolidation.

You should visit the bank you have an account with first and ask them if they can do you a special deal on a loan due to you being a loyal customer. Whatever they offer you before committing to something you should check out the loans on offer from other banks too. If you manage to get a loan to cover your payday loan and help you clear the outstanding amount, you will end up paying less in interest and will only have one, easy-to-remember payment each month.

Of course, if you have a poor credit history this may not be as easy as it would be for someone who's history is good. In this case you may find it difficult to find a loan with a low enough interest rate to make it worth your while. You may even struggle to get approved for a loan at all. In cases like this and depending on how much you owe, it may be worth looking into an agent-collected loan. This is when firms, such as Provident and Morses Club, lend you a certain amount of money and collect the payments from your home on a weekly basis. These loans are not credit checked and you have to provide a summary of your income to be approved. Typically you are looking at paying £17.50 a week for 50 weeks to pay a £500 loan. If you calculate the total amount of your payday loans and divide by 50, if you would be paying more than £17.50 a week, an agent-collected loan will be worth it.

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