Consolidating your payday loans
One should not hurt your credit scores, the other almost definitely will.One way to consolidate your debts is to apply for a debt consolidation loan.If the company you are using to make payments on your behalf misses a payment or fails to make payments, those late or missed payments will likely be reported as part of your credit history. The top performers in our review are National Debt Relief, the Gold Award winner; Freedom Debt Relief, the Silver Award winner; and Pacific Debt Inc., the Bronze Award winner.If you are not already past due, allowing yourself to become late on your payments in order to qualify will have a significant negative effect on your credit.Before entering into a debt consolidation program, make sure to thoroughly research the company you are considering.While this can seem like a tempting solution to a temporary cash flow problem, these loans often carry high interest rates, and can quickly turn into a case of mounting debt if not paid back within the first pay period.
Payday loan services offer a way for people to bridge the gap between bill due dates and pay dates.Others take a monthly payment from you, which goes into a trust to pay off any loans the settlement service reached an agreement on.Bankruptcy and debt settlement are not your only options when it comes to payday loan consolidation.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.
The bank will make one loan that you use to pay off the other loans in full.