Can you consolidate payday loan debt?

Yes, you can consolidate payday loan debt by getting a larger loan or line of credit to repay the debt. Once your existing payday debt is taken care of, you will need to repay the loan provider or credit card issuer until the new balance is paid off.  

Consolidating payday loan debt is a good idea if it will save you money. It’s hard to know exactly how much you’ll save, though. To estimate how much payday loan consolidation can save you, check out the free debt consolidation calculator on WalletHub. 

4 Ways to Consolidate Payday Loan Debt

1. Debt consolidation loan

   With a debt consolidation loan, you’ll use the funds from the loan to pay off your existing debt and then repay the lender. Some lenders may pay off your creditors directly. All you need to do is tell them where the money needs to go.

   Using a debt consolidation loan is the best way to consolidate debt if you don’t want to put down any collateral and can’t get enough funds with a credit card.

2. Balance transfer credit card

   When you use a balance transfer credit card, the issuer will pay off your creditors and then you will repay the issuer. If you can get a balance transfer credit card with a 0% APR introductory period, you should try to pay off your balance during that period. You’ll be subject to a high regular APR after that period ends.

3. Home equity loan

   You can use a home equity loan for almost anything, including consolidating debt. You will need to put your house up as collateral if you get one of these loans, so you risk losing your house if you can’t repay it.

4. Home equity line of credit

   A home equity line of credit lets you borrow money on demand like a credit card. You will have to use your home as collateral, though, so you may lose your home if you can’t repay what you borrow.

For more information on how to get out of payday loan debt, check out WalletHub’s guide on payday loan consolidation.