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.
An allows you to consolidate payday loans and other types of debt like credit cards and medical bills.
You can pay off multiple payday loans with one single installment loan, thereby consolidating the debt.
Payday loan relief programs and payday loan debt consolidation are common ways to manage outstanding payday loans.
If you’re stuck in a painful debt cycle, there is a way out.
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.
There may also be payday lenders who will file lawsuits for unpaid loans.
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.