Our payday loan consolidation calculator helps you understand why you should consolidate payday loans as soon as you can. It also gives you an idea of how much money you’re losing when you’re making payments as per the normal payment plan.
The calculator shows how much you have to pay on interest and how long it would take to get out of payday loans under a fixed repayment plan. It gives you the amortization schedule along with the total interest and principal amount to be paid on a monthly basis.
Well, our calculator is quite user-friendly. Anyone can use it.
First, enter the amount you owe on each payday loan.
Next, enter the interest rate charged by the lender on each payday loan.
Then, type the amount you’re paying for each payday loan
|Payday Loan||Current Balance ($)||Interest (% p.a.)||Monthly Payment ($)|
What happens when you consolidate payday loans?
Suppose you have 2 payday loans.
The current balance on your first loan is $3000, the interest rate is 80%, and the required monthly payment amount is $1200.
The current balance on your second loan is $3500, the interest rate is 60%, and the estimated monthly payment amount is $800.
In this scenario, the total interest you have to pay is $927 in 4 months. This is a huge amount which you have to pay for the interest.
If you consolidate these 2 payday loans, then the interest rate will be reduced drastically. Suppose, a payday loan consolidation company lowers your interest rate on your first payday loan from 80% to 40%. And, it manages to lower the interest rate on your second loan from 60% to 30%. Then, as per our payday loan consolidation calculator, you have to pay only $435 as interest in 4 months.
So you’ll save $927 – $435 = $492 in total.
Disclaimer: Our payday loan consolidation calculator is a self-help tool. It doesn’t include various finance charges and other fees you have to pay for payday loans. So the accuracy of the figure can’t be guaranteed.