Loan consolidation is the act of combining multiple debts into one single loan and one single payment. A consolidation counselor usually begins by evaluating all current loans, noting balances, interest rates, and terms. With this information, a counselor can easily determine the benefits of a consolidation. When working with a reputable payday loan consolidation organization, you’ll be invited to enroll in a program that will be affordable and suitable for your income level, and you’ll be able to see your monthly savings and your total savings over time before committing to the program.
Most financial decisions carry the answer of “it depends” but when the consolidation includes payday loans or other very high rate, short term unsecured loans, the answer tends to usually be a firm “Yes.” Since these types of loans have a repayment schedule that is very costly to the borrower, consolidation often results in a substantial savings. The amount of savings is amplified even more if there are penalties and late fees involved in the current debt summary.