Can Payday Loans be Consolidated?

Payday loans start as a quick easy way to get cash when you need it, but if you don’t pay them back right away, keep you stuck in debt. Then, when you need another one, you go to a different lender and the same thing happens. Before you know it, you’ve got several payday loans that you’re struggling to keep up with.

Wouldn’t it be great if you could consolidate them into one single loan?

Can Payday Loans be Consolidated?

Yes, payday loans can be consolidated, under the right circumstances. There are two ways that you can consolidate your payday loans. One is a debt consolidation loan, the other is a payday loan consolidation program. Each has its own pros and cons.

Debt Consolidation Loans

One way to consolidate your payday loans is a debt consolidation loan.

A debt consolidation loan is an unsecured personal loan that you take out from a lender. Then, you take the cash from these loans, and you pay off all of your various payday lenders. You still need to pay the lender who gave you the consolidation loan. Instead of paying all the different payday lenders, you just pay one — hence the name consolidation loan.

Benefits of Consolidation Loans

Lower Interest Rates

Just because it allows you to make a single payment doesn’t mean you should take out a debt consolidation loan.

You should only take out a debt consolidation loan if the interest rates are lower than what you are currently paying with the payday loans. Additionally, you’ll want to make sure that there aren’t any hidden fees that make your effective annual percentage interest rate higher.

More Legitimate Lenders

When you take out a debt consolidation loan, you’re not dealing with some shady payday lender. Instead, you’re working with a bank or credit union that is probably more reputable. They actually care about your ability to repay, which is why a credit check is probably necessary to get one of these loans.

Predictable Monthly Payments

A consolidation loan usually is broken into monthly payments, rather than every payday. You only need to make a single payment, and to keep track of one bill.

No Rollovers

One of the ways payday lenders get you is with rollovers. They allow you to easily roll over your balance into another term, still at a higher interest rate and usually with added fees. This isn’t the case with debt consolidation loans. If you want to extend it, you need to apply for a whole new loan. This will keep you disciplined and force you to make your full payments on-time.

Are You Eligible for a Debt Consolidation Loan?

Ability to repay matters when it comes to debt consolidation loans. Don’t worry, they aren’t looking for a perfect credit score, but the lender will do a credit check and assess whether you have the ability to repay the loan.

Payday Loan Consolidation Programs

The other way to consolidate your payday loans is through a payday loan consolidation program. Also known as a payday relief program, this involves working with a firm who interacts with the payday lenders on your behalf.

A payday relief firm will typically charge you on a monthly plan that’s less than the amount you owe. They will then negotiate with your payday lenders, in some case reducing your debt load from them.

Benefits of Consolidation Programs

Lower Amount Owed

Consolidation programs don’t require you to pay interest — just a monthly or biweekly payment. If you do work with a firm providing payday loan relief services, make sure that the amount you’re paying is less than what you’d have to pay the lenders.

Less Work

With a debt consolidation loan, you need to handle the payments on your end. You need to make sure you take the new cash and pay the lenders.

With a payday loan consolidation program, you don’t need to worry about that part. The firm handles all of it.


In addition to the money, a firm that provides payday relief services is available to help you with your financial situation. They’ll educate you on payday lending laws, give you personal finance advice, and help you with whatever you need.

Are You Eligible for a Payday Relief Program?

Payday loan consolidation/relief programs don’t do credit checks. But what they will do is ask you for all of your loan documents. They know which lenders they can negotiate with and secure better terms with, and which they cannot. Then, they’ll use this information to decide how much they’ll charge you. You should never have to pay an upfront cost for the program.

Typically a firm will only take you on if you have over $1,000 in debt.

Consolidating your Payday Loans

If you’re stuck with multiple payday loans, there’s a good chance that you can benefit from consolidating them. Look into both consolidation options to decide which one works best for you.

Have more questions? Request a free consultation and we’ll help you decide which options are best for you.


Does Debt Consolidation Hurt Your Credit?

Yes, it does, but the damage is only temporary. As you work to pay down your consolidated debt, your score will recover and will probably improve.

Can a Payday Lender Sue You for Not Repaying Your Payday Loan?

Yes, a payday loan company take you to court if you default on your debt. In order for this to happen, you must be delinquent on your payments and in violation of your loan agreement.

Can I Go to Jail for Not Repaying My Payday Loan?

No, but you could go to jail if you ignore a court summons or fail to follow a judge’s order.