While it is challenging to consolidate or eliminate payday loans, many experts recommend one of two methods to try. You can also learn your legal rights when it comes to payday loans, and what lenders can or can’t do when it comes to collecting on or issuing these types of short term loans to consumers.
The first option is to take out a different type of loan in order to consolidate your salary advance or payday loans. This option will involve you taking out a personal loan, using your home equity or maybe use a zero or low interest rate credit card cash advance.
In this case, if a claim is awarded to the payday lender, then it could appear on your credit reports as a judgment and negatively impact your credit.
Some lenders may also use reporting information from specialty organizations that may collect payday loan histories.
We sometimes get asked about payday loans and debt consolidation.
Payday loans are short-term loans where an individual can borrow funds needed to cover unexpected expenses until the date of their next paycheck.
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.