How to Consolidate Payday Loans in New Jersey

New Jersey prohibits payday loans, but some establishments, such as pawn shops, do advance payday loans to workers. State law protects loan consumers by forbidding interest rates be charged on such loans. The loan consumer is only responsible to pay back the payday loan principal and not the interest. Where consolidation is needed, a New Jersey resident can follow certain steps.

Instructions

1

Gather together all your payday loan documents. On a sheet of paper, write down the name of each payday loan lender and the principle amount owed on each loan. Do not include the interest or fees.

2

Add the principal amounts together. For instance, if there are 20 payday loans, each amounting to $250, the total would be $5,000.

3

Take the payday loan documents to a New Jersey loan consolidation agency that is licensed by the New Jersey Department of Banking and Insurance Licensing Services. Have a consolidation agent review your loan documents.

4

Apply for a debt consolidation loan. In New Jersey, most consumers with a steady work history who demonstrable income are eligible for debt consolidation. Check with the debt consolidation agent to learn the qualifications for your particular circumstances.