How to Consolidate Payday Loans

How to Consolidate Payday Loans. Taking out a payday loan may help you take care of an urgent situation. However, if you take out multiple loans at the same, it could become unmanageable. The good news is that you may be able to consolidate your payday loans into one monthly payment.

Step 1

Consider a secured debt consolidation loan if you own a home. This is actually a home equity loan with a low interest rate. Consumers who owe thousands of dollars in payday loans may be able to take advantage of this option.

Step 2

Use a credit card with no annual fees and a 0 percent introductory rate to pay off the loans. You would have one monthly payment and pay less in interest charges and fees. Take advantage of sites like to find the best credit card offers (see Resources).

Step 3

Explore the possibility of using services like to find private lenders who are willing to lend money to private borrowers.

Step 4

Take out a personal unsecured debt loan from a lending institution. This may be your best option since you don't need collateral. A good credit history is essential to obtain this type of loan.

Step 5

Ask a friend or family member for a personal loan. Offer to put everything in writing and to pay good interest rates. Paying a reasonable interest rate is better than continuing to incur fees from the payday loan companies.


While a home equity loan could help you manage your payday loans, you're borrowing against your home and it could be risky. Not making your mortgage payments could result in foreclosure.