How to consolidate short-term loan debt

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.

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.

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Name	Product	Filter Values	Loan amount	Turnaround time	Requirements
OppLoans Installment Loans			$500 to $4,000	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.	Go to site More Info		loading Fetching your data...
Fast5kLoans Short-term Loans Connection Service			$100 to $35,000	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.	Go to site More Info		loading Fetching your data...
LendYou Short-term Loans			$100 to $2,500	Same business day to 1 business day	$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.	Go to site More Info		loading Fetching your data...
Monevo Installment Loans			$500 to $100,000	Varies by lender	Credit score of 500+, legal US resident, ages 18+	Quickly compare multiple online lenders with competitive rates depending on your credit.	Go to site More Info		loading Fetching your data...
Fig Loans Installment Loans			$200 to $800, varies by state	As soon as the same business day	3 months of direct deposits, $1400 per month income, positive bank account balance	Get an affordable installment loan that comes with no fees, flexible terms and predictable monthly repayments.	Go to site More Info		loading Fetching your data...

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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.

Frequently asked questions

• Can I transfer my short-term loan debt to a loan that a friend or relative takes out?

  No, you’re only able to transfer your existing debts to new loans you take out in your own name.

• Can I get a debt consolidation loan if I have bad credit?

  Yes, but you likely won’t qualify for as low of interest rates as you would if you had a higher credit score. You may want to look into installment loans, which tend to come with more lenient eligibility criteria and offer amounts high enough to consolidate your debt.

• How does debt consolidation affect my credit score?

  Taking out a new loan or credit card to use for debt consolidation will temporarily lower your credit score, as the creditors will pull a hard credit check in order to decide whether to approve you. However, less debt means better credit. So in the long run, debt consolidation will ultimately help your credit score.