Refinancing Payday Loans

Payday loans help millions of people pay for minor urgent issues. Nonetheless, many borrowers find it challenging to repay their debt on time. In our practice, every fifth borrower encounters difficulties repaying their loan. It’s a known fact that cash advances are not the cheapest type of loan. On top of that, the borrower may often have to handle additional financial challenges before getting their next paycheck. Refinancing your payday loan can mean better interest rates. 

In a nutshell, refinancing a loan means taking a new loan to repay your old one. First of all, you need to ensure that your credit report is accurate. Any mistakes can jeopardize your chances of approval. If you identify any errors with your credit report, contact the companies listed on your report and ask them to correct the data. If they refuse to do so, contact a consumer rights lawyer or a government agency to help you solve the dispute.  

Once you ensure your credit score is accurate, you need to decide between a traditional payday loan refinance and a cash advance. Some payday lenders will allow you to rollover your loan. Another option is to take another loan with a different payday loan provider. It would allow you to close the previous debt quickly. If you need a larger sum of money, a personal loan is your.

Many borrowers manage to get lower interest rates and save money by refinancing a payday loan. However, not all lenders will have the option available. Moreover, if you don’t do it right, you could end up paying more in the long run.

The process of refinancing a payday loan may take some time. Besides patience, you will also need to specify:

  • The length of your loan, also known as the term;
  • Your current interest rate;
  • The length of time left before your next payday;
  • The amount of money that you need to pay off your cash advance in one lump sum;
  • The amount of your future monthly payments will go towards paying down the principal rather than interest.

On the one hand, refinancing your payday loan can be a way to clear your debts and reorganize your finances to get your budget back on track. On the other hand, you can get into unnecessary debt if you’re not careful. Our firm can help you make the right decision. We can even give you a ballpark estimate of your new expenses. All you need to do is reach out to us and describe your case to one of our experts.