Can a loan serve as a payday loan relief solution for you? It depends on the terms of your loan agreement. Yes, payday loan relief does prevent wage garnishments, especially if the loan is secured by an auto title loan or a home equity line of credit (or HELOC). However, such a debt settlement won’t involve any wage garnishing at all. In short, this is a myth that you should avoid.
Many people get confused when faced with late or delinquent payments. They then try to consolidate their debts through a debt consolidation company. A debt consolidation service consolidates your many monthly bills into one bill, which is then distributed between various creditors according to their agreement. Although you’re not paying more in interest payments, but your credit scores are typically reduced. Your credit scores may take a couple of years to recover from a single late or delinquent bill. If you can’t pay off multiple payday loan debts, then this strategy won’t save you money.
This brings us to another point: Not all debt consolidation programs involve wage garnishing. Not all lenders report to the IRS, and not all reports of late and delinquent bills show up on your credit report. In some cases, the creditors won’t even charge you a fee for a debt relief program. In other cases, your late or delinquent payments may still show up on your credit report. If this is the case, then you’ll still need to consider other options for getting out of debt.
One option for getting out of debt is a payday loan consolidation loan. To qualify get started, you must first be enrolled in an approved debt consolidation program. You must agree to all terms before the program starts. Once enrolled, you’ll need to complete a prequalification form and submit it to the lender. A prequalification form for a personal loan is different than a standard prequalification form for a debt consolidation loan.
When you apply for a payday loan relief program, you must submit a prequalification form. Lenders require many things, such as bank statements, pay stubs, current loan balances and social security numbers. These lenders will use these documents to determine if you’re eligible for a payday loans consolidation plan. If your lenders approve your application, the process of enrolling you in the program will begin. Most lenders require borrowers to complete a short application form and write a supplemental statement. Check it out here for more info.
Once completed, borrowers can expect their loans to be consolidated into one monthly payment. As previously mentioned, this new monthly payment may be lower than the combined amount of all previous monthly payments, but it will still be lower than the total amount of your debts. By paying off all of your current debts and getting approved for a payday loan debt consolidation program, you can save yourself from the humiliation of dealing with collectors and creditors. In addition, by eliminating late fees, penalties and other fees, you can save even more money. This means that the lower interest rate and waived fees are going to be even more money saved in the long run. To get more enlightened on the topic, check out this related post: https://en.wikipedia.org/wiki/Credit_score.