I default on my Payday Loan. What should I do?
You did not pay back your payday loan in time. You are missing the timely payments, and now the lender is after you. One thing you should be aware of is no lender can send you to jail for loan default. The worst that can happen is that the lender will file your name and label you as a loan default in the state regulatory agency. There are high chances of you being labeled as a high-risk borrower, preventing you from accessing loans in the future. As a result, lenders will look at you as a loan defaulter before giving you any loan; they might reject your loan application, too.
Alternative to Payday Loan Debt Consolidation
If payday loan debt consolidation is not the right solution, you can consider alternative solutions.
Extend the repayment period: Sometimes, payday loan lenders can extend your repayment period past your next paycheck, making your payments more easy. Also, you won’t be charged additional fees.
Enter a debt management plan: With a debt management plan, you can work with a credit counselor to bargain with creditors for more reasonable loan terms. Upon signing a credit agreement, you pay a monthly amount to the credit organization, which then pays your creditors.
Make sure you work with a reputable credit counseling agency before enrolling in a plan. Enrolling in this program won’t directly affect your credit rating, but you’ll likely have to close any account included in the plan. Taking out a debt consolidation loan may be cheaper than paying a monthly fee to credit counseling agencies.
Guide before getting Payday Loan Consolidation
Do you want to avail debt consolidation solutions from online lenders? Before doing so, we suggest you have a look at the following things a payday loan consolidation online lender should have:
- A valid address
- Good customer reviews
- The fee structure should be affordable
- Payday loan consolidation must comply with state laws
Before giving out a payday loan debt solution, we ask you to submit the following eligibility requirements:
- Address proof
- Valid contact information
- Age proof (18 or above)
- Proof of regular income (paystubs)
- Citizenship verification (US residents/permanent residency)
Consolidate your debts by paying off high-interest debts to save your hard-earned money with us.