Debt consolidation Singapore: How you can pay off multiple payday loans

It’s a constant struggle when you have more than one loan to repay – every round of paycheck goes through rounds and rounds of planning and budgeting, yet sometimes it never seems enough to pay off all your debts.

Here, we outline several tips to help you plan how to pay off multiple payday loans.

What is a payday loan?

Payday loans are small loans typically taken by those with urgent needs, such as to pay off healthcare bills or other urgent bills that simply cannot be delayed.

The loan amount is typically capped at the borrower’s one-month salary and it is usually repaid within a month, or on the borrower’s next payday. Due to the short repayment period, it usually has a relatively higher interest rate than other types of personal loans.

If you have taken on multiple payday loans, it can be tough to manage the high interest of all your loans as well as the tight repayment period.

How you can pay off multiple payday loans

1. Do careful financial budgeting each month

The first thing you can do is to start organising your loans. You can start by listing out clearly when each loan is due, and calculating how much to repay each time. There are various free tools you can find online to help you do so, such as using an Excel spreadsheet, or writing it down on a virtual calendar on your phone or computer.

Having a spreadsheet can give you greater clarity when it comes to budgeting for your monthly needs. It’s also an efficient way to keep track of your finances, and you will know exactly how much money from each month’s paycheck can be spent, and how much must be set aside in order to repay your loans.

If you find that repaying on time is a problem, set calendar reminders for yourself. This can be as simple as using Google calendar to sync up reminders on your electronic devices.

Repaying your loans on time can lessen your financial load by saving you the potential penalty fees and late interest that can cause your debt to accumulate if you do not pay up on time.

2. Take a debt consolidation loan

The term “debt consolidation” may sound strange and unfamiliar to those who’ve never heard of it, but it really refers to the act of consolidating one’s loans. A debt consolidation loan is therefore one that will help you pay off all other outstanding debts, including payday loans that have to be repaid.

The benefit of having such a loan is that it consolidates all the other loans that you have into a single loan. This means you will only need to make repayments to the one company whom you have applied for a debt consolidation loan from.

The loan comes as part of a debt consolidation scheme and is meant to help you fully repay multiple creditors easily.

You are also more likely to be able to secure the loan with a longer loan tenure and lower interest rate than payday loans – which will enable you to repay your debts with more comfortable installments and timeline.

Having your loans consolidated also reduces your chances of forgetting the various repayment dates and details – saving you time, effort and late payment fees.

Struggling with multiple payday loans?

If you are having trouble repaying many payday loans, you might find it useful to apply for debt consolidation help.

Let us know what you need – we offer debt consolidation loans at affordable rates and we can cater our loans accordingly.

Apply online now.