Consolidating pay day loans

20 May

Debt consolidation is one option that can help people recover from growing payday loan debt, or other debts.

However, the term “debt consolidation” may refer to at least two different things.

Once a collection agency purchases the debt, they may then report the collection account to the credit reporting companies, and the debt will then appear on your credit reports.

There may also be payday lenders who will file lawsuits for unpaid loans.

However, loan consolidation comes with its risks and therefore there are alternatives to it.

Here's more on choosing a service to help with payday loan debt, along with detail on how we arrived at our ranking of these services.

Debt Consolidation Loan is a financial instrument which provides repayment for your current debts by combining them into one debt.

Of course, with the new bill comes a new interest rate.

If you have not yet paid back the principal, then inform your lender that you are willing to do so but on your terms and conditions.

However, if you have paid more than the principal amount, then you can demand a refund of the overpayment.