Break the payday lending cycle

Payday loans might seem like an easy solution, but they can quickly land you in a tricky financial situation. If your payday loans have spiralled out of control, all is not lost. In fact, it may be easier and quicker than you think to get your financial freedom back.

Debt Busters can help you break the payday lending cycle with a tailored plan customised to your budget and goals.

We have more than 15 years of experience in helping Australians take back financial control. Contacting us is the first step. Let us help you break free from your payday loans and get on with your life.

What Is the Payday Lending Cycle?

What exactly is the payday lending cycle and why is it such a negative thing for your finances? Payday loans have earned themselves a bad reputation, and with good reason.

Because payday loans are just a “quick fix” consumer loan, they’re not an effective way to manage a financial emergency. These payday loans earn their name since they prey on those who need additional funds to hold them over until payday.

While a payday loan might be what you need to get your car fixed or pay rent on time, these lenders charge up to 48% annual interest on a typical loan. Frankly put, they’re predatory and downright catastrophic for your finances.

Since the fees are so high, you likely won’t be able to afford to repay back the original loan on time, resulting in needing a second payday loan…and a third…and a fourth. The cycle continues until you’re not sure how to reclaim your finances.

Can You Consolidate Payday Loans?

If you’re currently repaying 2 or more payday loans, it’s a good idea to look into consolidation. When you consolidate, you use a new loan to repay your existing loans. This results in a single payment instead of many.

In addition, consolidating usually results in a lower interest rate, especially in the case of payday loans. You could have a lower monthly payment, effectively helping you get out of the payday lending cycle faster.

Consolidating your payday loans is often the easiest and most attainable way to solve your personal payday loan crisis and begin recovering financially. Once you’ve consolidated, you’ll have more flexibility to build a new budget, pay off your debt, and start saving for your future.

Benefits of Consolidating Your Payday Debts

Why use a consolidation option to pay down or completely repay your payday debts? While it might seem like a risk to borrow even more money when you’re already in debt, there are a number of benefits.

  • Simple payment – First, you’ll no longer have to worry about balancing several payments at once. This will make it easier to avoid missing payments, something that could negatively affect your credit rating.
  • Avoid fees – Did you know that most payday loans come with hefty fees in the fine print? These will quickly catch up on you, adding to your balance and making it harder to keep up with your repayment. Consolidating will cut most of these fees out of your monthly payments.
  • Save money – Because consolidation options usually have a significantly lower interest rate compared to a payday loan, you’ll actually save money each month. This will help you pay off your debts faster.
  • Improve your credit – Making regular, consistent payments towards a consolidation option will keep your credit in good standing. These are far less risky than payday loans.
  • Protect your future – Payday loans are a vicious cycle. It’s better to avoid them altogether by consolidating quickly.


How Do You Consolidate Payday Loans?

There are a number of ways to consolidate your payday loans. The best solution will depend on your level of debt and the terms of your loans, so be sure to discuss your unique situation with a Debt Busters specialist.

Here are your options for payday loan consolidation:

  • Personal Loans – With a personal loan, you can consolidate your debts into one easy and affordable payment at a significantly lower interest rate. This could save you money in the long term and help you become debt-free faster.
  • Credit card balance transfer – Some card providers will allow you to transfer your personal loan debt to a credit card. If you have good credit, you might qualify for a low interest rate or zero interest introductory period.
  • Informal payment arrangement or debt agreement – This solution allows you to pay off your debts with better terms by offering an agreement to creditors.


Again, there is no one-size-fits-all solution, but most borrowers benefit from one of these consolidation options above when facing the payday loan cycle.

Can You Have Too Many Payday Loans to Consolidate?

If you’re currently repaying several payday loans, you might be wondering if there’s such a thing as too many. In most cases, there’s no limit to how many payday loans you can consolidate. It will come down to your credit rating and whether you’re eligible for different lines of credit that can be used for consolidation.

However, if you’re repaying more than 2 payday loans, it’s a smart idea to talk to a professional at Debt Busters. Failing to pay your payday loans on time or creating a long-term solution is a slippery financial slope.

Take action to protect your financial future by consolidating your payday loans today. Once you have a new budget in place, you’ll be in the right situation to make real progress.

Talk to a Payday Loan Debt Specialist

Dealing with the fallout from payday loans can be intimidating. You’re suddenly facing skyrocketing interest rates and fees, and you’re not sure what steps to take next. It’s easy to see why it’s called a payday loan cycle — it’s hard to break free once and for all!

If you have too many payday loans, you have options. Let the expert team at Debt Busters help you today. Call us today on 1300 368 322 or request a call now and we’ll be in touch shortly to discuss consolidating your payday loans.