They don’t work with traditional deposits but instead repay your old debts and then collect the amount from you on a monthly basis with a new interest rate.
Usually, these companies start at the prime interest rate plus 5%.
The number of the bills you have and the combined interest rate are reduced.
When concerning a payday consolidation loan, it is common that they are unsecured, based only on your promise to repay.
So if your debt exceeds it, you won’t be able to take up a payday consolidation loan from them.