Does Payday Loan Debt Consolidation Work?

does payday loan debt consolidation workThere are ads being run all over the radio and tv suggesting people get consolidation loans by combining their payday loans and all their other debt into one loan but does payday loan debt consolidation work on its own and would it be better to do it that way?

A bank or credit union debt consolidation loan is completely different from a payday loan consolidation loan and if you know the differences between the two you can save a ton of money by accomplishing the same goal of eliminating your PLD! (PLD is payday loan debt for short)

It is important to understand how consolidation loans work in different situations. let’s find out if indeed it would be better to isolate that payday loan debt!

Check out our number one recommendation for payday loan consolidation!

Are consolidation loans all the same?

all the sameThe simple answer is no, they can be completely different depending on many things including where they are borrowed from and what they are for.

Consolidation loans from banks and credit unions are basically a new loan used to pay off a combination of loans that could include payday loans, credit cards, personal debt, and the likes.

The payoffs on these multiple loans you are wanting to consolidate are calculated and then combined into one total debt amount that becomes the loan amount a person is requesting from the bank or credit union to pay them all off.

You will be left with one new loan payment instead of all the individual payments you had with the other loans, and the new loan will include one interest rate instead of the multiple interest rates that were involved with the original loans.

Sounds pretty good if you have high interest rates on some of that debt and you can roll it all into a new loan that charges lower interest, but there is an even better way to consolidate your payday loan debt.

What if you could take all that high-interest payday loan debt and cut it in half or better, stop the interest completely and have it eliminated within 18 months?

Now that sounds pretty good!

Let me introduce you to payday loan consolidation!

How payday loan consolidation loans work

Unlike a conventional consolidation loan which deals with all of your debt a payday loan consolidation loan is strictly for PLD.

It is really not named correctly because it does not involve any kind of loan whatsoever, rather it renegotiates your current payday loan debt.

A good consolidation company will start by completely taking over your debt and representing you when communicating with the loan companies. You will no longer need to ever talk to them again!

They start the negotiations by getting all legal actions stopped along with all collection activity and in most cases get up to 80% of the outstanding interest written off the loan saving you a ton of money.

They then renegotiate a payback schedule, in most cases, you will be out of PLD within 18 months or under with an affordable monthly or bi-monthly payment that you send the consolidation company every due date.

They, in turn, make your loan payments for you and before you know it you are done with the debt and you saved a bunch of money in the process!

It makes complete sense to use a specific payday loan consolidation company over just getting a consolidation loan that includes all of your outstanding debt.


Because you save much more money on having the debt renegotiated and the outstanding interest adjusted.

How Can The PLD Consolidation companies do this?

negotiateThese companies establish a working relationship with all the PDL companies because they work with them every day and they have a track record of collecting money for the loan companies.

This allows the companies the ability to be able to negotiate because they know they will get results from the consolidation companies from past experience.

Not all consolidation companies are the same so be sure to check out our article on the best ones available.


Most people do not have the information they need to choose how to get rid of PDL debt, and we are glad you checked this article out.

It is a no-brainer to use the right company to consolidate your PLD and we hope we helped you understand why!

We want to hear what you think!

If you have a question to ask or a story to share please leave them below in the comments section and we will address them promptly or give us a call toll-free at 1-899-80-5100!

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