It may seem like a great idea to have two loans, Payday Loan Consolidation and a new loan for other expenses, but it can be a bad choice. First, the interest rates on Payday Loans are very high because they are short-term loans that usually do not need the next payment to be made until the next payday.
The next thing is that when you have one loan with a higher interest rate than another, the Payday Loan Consolidation will add the new higher interest rate to your new loan. You now owe the same amount of money as you did with the first loan, plus the additional payment, and you will end up paying more overall.
These factors can turn a Payday Loan into a large debt. One way to avoid this is to get your two loans set up together as one single payment, which allows you to keep your interest rates down.
Before you do anything else, have all your bills ready, including credit cards, utilities, phone, and car payments. When you receive your statements it will be easier to see how much money you are making each month, so you will be able to calculate how much you are really spending.
Payday Loan Consolidation is an option to do this. It can take your bills, and figure out which bills would be most profitable to pay, leaving you with only those that you actually want to use.
You could make the bill payments yourself, but they may not always work extra well for you. Also, when you pay a bill online, you are making sure that you pay that bill on time.
If you already have a phone bill, there may be a payment you are missing due to a late fee or a hidden charge. You can set up that account so you can get paid early every month, so you can have the freedom to be late with the rest of your bills.
With the Payday Loan Consolidation, you will also be able to pay off the current bill and let it go for a while. At the end of the month, you will be happy to know that you have paid off the minimum payment, leaving you one payment left to pay off your Payday Loan Consolidation.
This keeps you from paying the new money, and paying for a new loan each month. This means that you will have a lower balance each month, and you will get that lower amount with your Payday Loan Consolidation.
In addition, when you do your calculations for the difference between the loans, Payday Loan Consolidation can actually lower your monthly payments. You will end up paying less in the long run, so you will save money over time.
The biggest advantage to Payday Loan Consolidation is that you will not have to worry about paying more than you can afford, like you do when you have two loans. You can have one loan, and one payment, saving you money, plus it is much easier to keep track of when you have both loans on the same account.
There are many options for you to choose from, depending on your situation. Keep an eye out for the best deal possible, and you will be able to pay off both your Payday Loans with one low payment.