In today’s world, many consumers owe large amounts of money to payday loan lenders. Promised affordable monthly payments, many people are drawn into the trap of accruing large payday loans with exorbitant interest rates running up to 700%. As a result,many consumers are forced to pay unaffordable amounts of money to payday loan companies for many years. In some cases, these payday loan payments can lead individuals into bankruptcy. By consolidating these existing payday balances making payments on time can be much easier. Most importantly, interest rates on balances can usually be reduced to 0%.
Simplified Payment Plans
Some consumers are forced to pay many bills every month. This can be especially true for individuals who are in debt. As a result, it can be very convenient to consolidate payday loan payments into a single account. By doing this consumers will only need to make a single payment each month. Instead of paying several bills every day, consumers can focus on growing their earning potential.
Having a simplified payment plan can make it easier to avoid late penalties and fees. Many consumers with outstanding payday loan accounts find it difficult to make all their payments on time. When there is only a single account, it is easy to keep track of whether a payment needs to be made.
Reduced Interest Rates
The biggest payday loan consolidation benefit is that it can reduce interest rates. When consumers initially got themselves into debt, they may have been desperate for money. As a result, many consumers accept payday loans on unfavorable terms. Consumers who consolidate payday loan payments can lower their interest rates to 0%. After several months of making payments on time the debt starts to go away. Making payments on principal only is the difference.