Does consolidating payday loans work
It’s a warning sign to other lenders that you may not be trustworthy with their money, and it can take a long time to get your credit score back where it was before.
Here’s where it gets interesting: if you miss a payment or default on a payday loan, that payday lender will you for missing a payment or defaulting on your loan.
If you make all of your payments on time, a traditional lender will report those on-time payments as on your credit report.
If it’s not, you might not actually have to repay the loan! Each state chooses to set how much money someone can borrow, how long they can borrow it for, and what interest rate payday lenders can charge.
If you are not eligible for any personal debt consolidation loans, your next best step is to contact the National Foundation for Credit Counseling.
They’ll connect you with an ethical, caring, and professional credit counselor who can help you navigate what the best steps are for your individual situation.
The biggest benefit of consolidating your payday loans is that you can .
In some states, payday loans can charge nearly 400% APR (or even higher! Even with poor credit, you can expect to pay off a personal loan with an interest rate of 28.5-30% APR.
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These services are often completely free—believe it or not—but you may need to pay a small fee depending on your situation.