Is it a good idea to get consolidation loans?
Over time, you may have accumulated several payday loans to cover expenses that you weren’t expecting. Most payday loans have very high-interest charges applied to them, and if you don’t pay on time, the amount owed can increase dramatically.
It’s a much better option to consolidate your payday loans into one cheaper and more flexible loan. It will reduce the amount you are paying overall and give you breathing space to get your finances in order.
How do consolidation loans work?
If you have five different $200 payday loans, you’ll owe $1000 in total. With the interest rate on payday loans, you could suddenly owe twice as much if you don’t pay them off entirely within the set period.
Consolidation loans work by providing you with the $1000 to split between the existing debts, effectively paying them off. You then need to pay off the consolidated loan of $1000.
Can I get a consolidation loan?
If you are a Canadian of at least 18 years of age and you’re in a steady job, you can most likely get a consolidation loan. Your best choice is an installment loan, which can be up to a total of $1500.
The only thing to do is to fill the online application form. It will be reviewed in a few minutes after the submission. In some cases, you might need to provide supporting documents, such as a hydro bill or pay stubs.
There is no credit check involved, so even if you are struggling with bad credit, you can still apply for an installment loan.
Once approved and your contract is signed, your money will be deposited in your bank account, allowing you to quickly pay off your payday loans.
How do I repay an installment consolidation loan?
Installment loans have a maximum term of 120 days. Payments are made in installments within this period. With your payday loans, you would need to pay back the whole amount within a few days, but an installment loan allows you to plan to pay a portion every month. It is much easier to handle and can help you get back on top of your budget quickly and easily.
Suppose you want to reduce your payments and secure your future. In that case, an installment loan is an excellent solution with a sensible interest rate that will help you to consolidate your payday loans into one cheaper and more flexible loan.