Payday loan relief may sound like a relief to anyone struggling to settle a payday loan. But sometimes firms can fool you into taking options that aren’t good for you.
You take a payday loan because you are worried about the temporary cash deficit. And you presume that it will be easy to payoff. But once you fail to pay it off in the first pay check, then the interest keeps adding up. Till it becomes a drain on your income.
In such cases, you can take the help from bank. They will offer you various options. Some of them are mentioned below.
Debt consolidation loans are a type of payday loan relief. They are further loans taken from banks. But this is a huge sum that you take from the bank to pay off all your loans. You can return the loan over a long period of time. And the interest rate is also low.
Your loans are paid full. That is why, credit report shows “Paid in full”. And it does not negatively effect your credit score. It is the best way to deal with payday loan when you can’t pay off in the first go.
Many firms parade the debt settlement loans are debt consolidation loans. And those who have little knowledge of payday loan relief they fall prey to it. You have to make one payment to a debt settlement firm. And then the amount is paid off to your lenders. The debt settlement firm does not payback in full but negotiates the settlement of your debts. And it pays less than you had agreed to.
But in this case, the credit report shows “settled”. And it indicates that you haven’t paid your debt back in full. It negatively effects your credit score.
These are the options you can use for payday loan relief. You can go with whatever suits you the best.