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How to consolidate short-term loan debt

How and if you should take out another to pay off payday or installment loan debt.


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If you are currently repaying two or more short-term loans and finding the repayments difficult to manage, you may be wondering what your short-term loan consolidation options are.

What exactly is short-term loan consolidation?

Short-term loan consolidation entails combining multiple debts into one, often at a lower interest rate. This means you will then have just one company you have to make one monthly repayment to, which will help make paying back your short-term loans less confusing with a more streamlined process.

Can I use a short-term loan to consolidate debts?

Have multiple short-term loans and want to roll them into one? Using another short-term loan may not be your best option. That is, unless you can afford it. Short-term loans are usually taken out because the borrower has few other options due to bad credit or is receiving a low income. Using a high-cost short-term loan to consolidate outstanding high-cost short-term loans may not be the solution for you. However, there are other options available.

How else can I consolidate payday loan debt?

A bad credit personal loan is a viable option if you want to consolidate your short-term loan debts. Rates vary for unsecured personal loans, especially for bad credit borrowers. But you stand to find a loan that’s large enough to pay off your payday loans and has a reasonable interest rate that’s more affordable.

You could also save money this way if you get a loan with a slightly longer repayment term. That way, you won’t be stuck with multiple late fees or other penalty fees that come with high-cost payday loans. To find out more, you can read our guide on bad credit personal loans.

If you have a friend or family member willing to lend you money for a couple of months, this could be another option. Although it might take a hit to your pride to ask, loved ones tend to offer money to friends or family with no added interest. You could use this money to pay off your payday loans. Then, treat your loved one like a lender and pay them back with regular on-time payments as agreed.

3 strategies to pay down payday loan debt without another loan

If you apply for loans and have your application rejected, or read through the eligibility criteria and can’t find a loan you’re eligible for, it’s time to find a strategy to pay down the loans that you have.

  • Get in touch with your lenders. Most short-term lenders have a collections department that may be able to offer you assistance or help you establish a repayment plan. The earlier you get in touch with your lender, the easier it’ll likely be for you to get an extended repayment plan.
  • Draw up a budget. Sit down and work out all of your income and expenses and see where you can cut back. Consider an online budgeting software to help you keep track of your finances.
  • Consider working with a credit counseling organization. Reputable nonprofits can recommend ways to work out a budget and often offer free materials and workshops to help you manage your debt for the long-term.

A selection of installment loans

These loans offer longer repayment terms and higher amounts than a typical payday loan. You could use an installment loan to pay off your payday loan debt. Before applying, check the provider’s website you’re interested in to be sure it operates in your state.

Data indicated here is updated regularly
Name Product Filter Values Max. Loan Amount Turnaround time Requirements
Fast5kLoans Short-term Loans Connection Service
As soon as the next business day
Regular source of income, verifiable bank account, US citizen, ages 18+
Get connected with multiple lenders you might qualify with — even if you have bad credit.
 Check Into Cash Installment Loans
1 to 2 business days
Bank account, email address, phone number, US citizen or permanent resident, ages 21+, $3,500 minimum income in California
Borrow money with lower payments and more time to pay than a traditional payday loan.
OppLoans Installment Loans
1 business day
Direct deposit, meet minimum income requirements, live in eligible state
Comes with the option to change your due date so you won’t fall behind on repayments.
LendYou Short-term Loans
Same business day to 1 business days
$1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
Get offers from potential lenders in minutes by filling out just one online form.
Possible Finance Mobile Installment Loans
As fast as 1 business day
Checking account with 3+ months of banking history, $750+ monthly income, live in eligible state, ages 18+
Borrow up to $500 with just a few swipes — but only for residents of 5 states.

Compare up to 4 providers

Bottom line

If you’re stuck in a short-term loan debt cycle, you have options to get out of debt. Whether it’s consolidating your short-term loans or finding a strategy to repay your outstanding debts, start by comparing your options and finding the right method for you.

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