Some people may find payday loans a useful device to borrow a few hundred pounds for a matter of days or a couple of weeks, but if you find yourself with a number of them to pay off at once or are continually eroding your wages by using pay day loans regularly, you may want to consider payday loan consolidation.
The market for these short-term loans has increased massively over the past few years, as more people run out of money before their next wages reach their bank account – in summer 2012, the Unite union indicated that there was a shortfall for 82 per cent of its members.
That same poll found that 12 per cent of those polled resorted to using payday lenders to make up the difference, even though the interest rates involved can often appear to be very high, even thousands of percent and you don`t have that long to pay back the money.
However, whilst it`s one thing to use these kinds of loans for short-term needs, if you`re in need of a longer-term debt solution they are probably not the answer and may even put off potential lenders as it will appear that you may have cash flow problems. It is important to understand why you keep reverting to payday loans. Do you need to consolidate your other credit to be able to get your cash flow straight?
The advantage of these when you`re looking to restructure your debt is that you have longer to pay them off – from 3 to 25 years – whilst you can raise enough money – from £3,000 to £100,000 in order to pay off all of your unsecured borrowings, although overall interest payments may be higher as a result.
Find out more about payday loan consolidation by contacting the finance experts here at First Choice Finance – you can call for free from a landline on 0800 298 3000, if using a mobile its cheaper to call 0333 003 1505 or visit firstchoicefinance.co.uk
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