Payday loans are cash advances that you are obligated to repay by your next payday. While they are a quick way to get immediate money if you are in dire need of it, they are still a loan that you have to pay back—quite often with steep interest. If you have taken out payday loans in the past and are unsure if they have been satisfied, here are some ways to find out if you still have any outstanding payday loans and how to go about paying them off.
Outstanding Payday Loans Can Hurt Your Credit
One thing about payday loans is that lenders won’t run a credit check on you if you apply for one. For many people, this is an advantage, however, payday loans won’t boost your credit score if you pay them back on time. Furthermore, if you don’t pay back a payday loan on time, the lender can turn you over to debt collectors. If this happens, it can hurt your credit score—limiting your ability to make large purchases or qualify for lower interest loans.
Tracking Outstanding Payday Loans
Typically, the best way to discover outstanding loans would be to check your credit report as traditional loans are reported to credit bureaus such as Equifax, Experian, and TransUnion. However, payday loans operate differently than traditional loans as payday lenders do not generally report outstanding or overdue debt to creditors. Once a payday lender sells your outstanding payday loan debt, it can be filed with a credit bureau and can stay on your credit report anywhere between six and ten years.
In all likelihood, you shouldn’t have a problem discovering the existence of any outstanding payday loan debts because collection agents and creditors are notorious for endlessly contacting delinquent borrowers night and day with borderline harassing calls in order to retrieve their payday loan repayments.
Getting Out of a Payday Loan
There are two different options for borrowers who want to get out of payday loan debt once and for all.
1. Extended Payment Plans: EPPs give you more time to pay off your debt and come with no extra fees or interest. The most important thing to remember is to not default on your payments. Otherwise, you’ll get turned over to collections.
2. Credit Counseling: Essentially, credit counselors help to renegotiate and restructure your deal with the loan company so that it is easier for you to payback what you owe. Credit counselors are financial experts and will evaluate your current situation to figure out your best options and the ideal route for you to take to get out of payday loan debt.
Get Payday Loan Relief from Debt Management Experts
If you want to talk to someone with experience and expertise in settling payday loans and other unsecured debt, then look no further than the professionals at Progressive Debt Relief. Our credit counselors and financial experts have established relationships with creditors and collection agencies that allow us to negotiate your debt. Our experts will evaluate your debt situation and determine a plan of action to settle your debt into manageable payments that accommodate your income and budget. To schedule your free consultation, contact Progressive Debt Relief today.
