Find out your options for consolidating payday loan debts with Savvy.
Fact checked
Fact checked
If you have one or more payday loan debts to juggle right now, you may be paying more than you need to in interest and fees for these debts. Because of this, it’s important to know what your options are when it comes to managing these payments, with a payday consolidation loan being one of those. You can learn more about how these loans work and what you can do to manage them more efficiently right here with Savvy today.
A payday consolidation loan is a personal loan designed to help individuals struggling with multiple payday loan debts. It works by combining or consolidating these debts into a single, more manageable loan. This new loan typically comes with a lower interest rate than the cumulative rates of the individual payday loans, making it easier for the borrower to repay. The primary goal is to simplify the repayment process and reduce the financial burden associated with multiple high-interest payday loans.
Many people choose to take out consolidation loans for a range of different debts, not just small loans. Because of this, you can use one of these loans to bundle other outstanding costs with your payday loans, such as your credit card debt, to potentially lower its interest rate and make it more manageable for your budget.
No – payday lenders typically don’t permit borrowers to take out a loan explicitly for the purpose of repaying another loan. Attempting to use a payday loan for debt consolidation may lead to a cycle of debt, as these loans are designed for short-term financial solutions and come with high associated costs.
Instead of using this approach, seeking a debt consolidation loan with more favourable terms, such as lower interest rates and longer repayment periods, can provide a more sustainable and effective solution for managing and eliminating payday loan debts. This way, borrowers can break free from the cycle of payday loan dependency and work towards long-term financial stability.
There’s a wide range of benefits to using a debt consolidation loan for your payday debts. These include:
Disclaimer:
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
