All kinds of people from all walks of life use these loans every single day, especially now that they’re so easy to get online. They include those who are dealing with one or more of the following:

1. An expensive trip to a vet for a family pet,
2. A family illness or injury,
3. Kids need back-to-school clothes,
4. Past due utility bills,
5. New clothes for an all-important job interview,
6. Overdue insurance premiums,
7. Unexpected home repairs,
8. Unexpected vehicle repairs,
9. Any other emergency in life, large or small.

Payday loans are often called many different things including:

[1.] Cash advances

[2.] Deferred deposit loans

[3.] PDL

[4.] Paycheck loans

[5.] Payday advances

[6.] Payday cash loans

[7.] Payroll loans,

[8.] Salary loans,

[9.] Short-term advances,

[10.] Short-term loans,

[11.] Small-dollar loans

[12.] Unsecured loans

Actually it’s neither because payday loans aren’t usually even a type of installment loan. That’s due to the fact that the full amount of the loan repayment is typically due all at once. It isn’t a revolving loan either, since the borrower can’t repeatedly borrow more money and then pay back the loan.

There’s no such thing as “debtor’s prison” in the US, so no, you definitely can’t be arrested for any debt or for getting behind on any payments. Creditors of consumer debt (including everything from credit cards to medical debt, mortgages, payday loans, or student loans cannot cause you to be arrested or jailed.

Payday loans are quite often harder to repay than traditional loans since the lender has not verified your ability to repay prior to lending you the money. Payday lenders do not, for example, take into account your other debts before giving you a loan.

Everything from installment loans to payday loans, and personal lines of credit are common types of unsecured loans. In the event that a borrower can’t repay an unsecured loan, the lender isn’t able to take the consumer’s assets, however, they can transfer your account to a collection agency or their internal collection department to help with setting up payment arrangements.

Absolutely! If you fail to repay your loan, the lender or a debt collector for the lender can sue you for the purpose of collecting. In the event that they win, or if you fail to dispute their claim, the courts will end up entering an order of judgment against you, which will state how much total money you owe and that usually includes some egregious additional fees, including attorney’s fees.

In most cases, you can cancel your PDL agreement any time up to two or three business days after signing it. You have till the end of the second day to do this. This is generally called a cooling-off period and you should always have one even if your loan agreement doesn’t include it. You don’t need a reason to cancel, however, you do have to return the borrowed money but don’t have to pay any interest or fees. The lender must provide a receipt and return any postdated checks or other debit forms that you gave them. Following the cooling-off period, canceling your loan agreement is only an option if the payday lender failed to follow all of the rules. For example, in the event that they:

● Failed to provide a copy of your agreement as soon as it was signed,
● Failed to give you the money as soon as you signed your agreement (in-store loans only),
● Failed to initiate delivery of the money within one hour (online only),
● Your agreement doesn’t include all of the information that it’s supposed to. If the lender did follow all the rules, you can’t cancel and have to repay the full amount that was promised under the agreement. If you can’t repay it, you should talk to us about your payday loan consolidation options.
Payday loans are clearly here to stay. As long as everyday people need quick cash-in-hand, there will always be payday lenders. There are alternative methods of getting money, including a credit card cash advance, a peer-to-peer loan, a short-term bank loan, or a charitable donation, however, most borrowers either don’t qualify or don’t have the time to wait for them to produce the cash they need. As long as you know exactly what you’re getting into when you get a payday loan, you’ll be fine. Just make sure that you do your homework on the subject and, if you still get into trouble with payday loans, we’re always here to help.

This varies from state to state, however, for example, in the state of California, the statute of limitations on all consumer debt is four years. This means that creditors can’t prevail in court once four years have passed, making that debt uncollectible. However, this also varies among the specific lending companies. Some lenders, both large and small, prefer to take the tax write-off instead of spending the additional capital chasing errant borrowers. And, once they’ve written them off, it’s best for their overall financial health to stop all collection efforts rather than getting caught “double-dipping” by the IRS or having to do all of the paperwork required to fix it. 

A payday loan can stay on your credit report for up to six years, so if you find one on your report, settling the debt can help with getting it off your report faster and improving your debt-to-income ratio.

Yes, the Consumer Financial Protection Bureau (CFPB) rule requires all payday lenders to acquire express written permission to access any consumer’s bank account following two failed attempts to collect on a payday loan (among other provisions). In addition, the Payday Lending Rule prohibits any payday lender from initiating a payment transfer in connection with specifically covered loans and in certain circumstances. The CFPB is in charge of implementing and enforcing federal consumer financial laws in order to ensure access to consumer financial product markets for all consumers.

Many borrowers in the US default on their loans every day, and one common question that they ask is if nonpayment of a PDL could result in imprisonment but the simple answer is “no”. However, that being said, beware of lenders or collectors who try to intimidate you into paying by threatening arrest and imprisonment. That’s illegal and you should let any collector know that you’re well aware of that. 

Payday loan consolidation is always a better option than declaring bankruptcy. Consolidation does require you to pay back a significant portion of the borrowed funds, though often a lower amount due to the negotiations. The primary benefit to this being all of the involved accounts will be either paid or settled.

With a bankruptcy, you may not have to pay it back in the same manner, but there are other downsides to the filing. While the debts will be officially discharged in the eyes of the courts, the bankruptcy determination will stain your credit for a minimum of 7 years.

The constant harassment by phone of lenders is one of the most infuriating and frustrating parts of bearing debt from short-term loans. While the reasoning behind them is understandable, the endless calls can be overwhelming and even frightening for those dreading them.

Once you are enrolled in our payday loan consolidation program, we will send cease and desist letters to all current lenders, so your phone burden will be relieved almost instantly. We will become your primary contact for all your debt-related communication.

Whether or not consolidating your debt will impact the amount of taxes you owe depends on what plan you use. With a debt consolidation loan, most of your unsecured debts are rolled into one loan, potentially leaving you with a lower monthly payment and aggregate interest rate, although you will still be paying off and honoring all of your obligations. Because of this, there is no tax liability.

With debt settlement, our team negotiates with your lenders to lower your rates. When these rates are lowered, the amount of debt forgiveness would be reported to the Internal Revenue Service (IRS). The amount that is reported is how much will be expected of you to pay taxes on as if it were income. Keep in mind that you are obligated to report all unsecured debt forgiveness to the IRS, even if your lender says they will handle it.

Will Debt Consolidation Lower My Monthly Payments?

One of the benefits of working with National Payday Loan Relief is that none of our programs require you to close your checking account. Payday loans can become problematic when they debit your payment as agreed upon when you signed up for the loan.

Sometimes the money is withdrawn earlier than expected, which can lead to problems. When we step in, the ACH withdrawal privileges are revoked, meaning the lenders will no longer be able to draw funds from your accounts.

While it is easy to confuse the two, a debt consolidation loan and debt consolidation are different things. Debt consolidation means all of the money owed is gathered together leaving you with one large loan, giving you a single monthly payment. This makes meeting the requirements easier.

A debt consolidation loan, however, just means you are taking your unsecured debts and offering some sort of estate, such as a home, to secure it. Debt consolidation loans are definitely riskier, as your business or home is being put on the line.

Debt consolidation is generally available for unsecured debt and car loans. It is very rare that consumers get into debt trouble due to a mortgage, but there are other types of unsecured debt that can negatively impact your credit. The types of debts our debt relief programs may be able to help you with are:

• Credit cards
• Payday loans
• Unsecured personal loans (including student debt)

Our goal at National Payday Loan Relief is to come up with a customized plan to consolidate your payday loans. Our plans vary depending on your specific circumstances, but they are generally for 6, 12, or 18 months.

Some of our clients have thousands of dollars in debt, while others only have about $600 they need to pay. No matter how many loans you have, we’ll negotiate with your lenders, leaving you with one single payment.

When you decide to put your trust in a debt consolidation company, it can be stressful to not have confirmation that your lenders are being paid off. Luckily, there are a number of ways modern consolidation companies provide for you to keep an eye on the activity on your accounts.

Most companies have an online portal where consumers can view a digital account summary. Alternatively, you can always contact the company if you don’t want to use the online options.

When the amount of debt you have becomes overwhelming, consolidating your loans can give you some much-needed relief. Consolidating your debts is helpful because you get a lower rate, less interest, and you’re no longer stuck dealing with multiple payments each month.

Our team contacts your lenders so we can negotiate a lower amount. After your loan debt is consolidated, you’ll have one manageable monthly payment.

Enrolling in our debt relief program is simple, fast, and free! Simply complete our online form or call for a free consultation. Once we have received the details of your existing loans and current financial situation, our team can get a plan together to help you reach your goals of financial recovery.

It’s no secret that unsecured debts related to payday loans and credit cards can negatively affect your credit score. To rectify this, a debt consolidation loan can help.

Debt consolidation can improve your credit in the long run, but initially, you may see a negative impact on your score because this additional loan is another form of debt.

Your credit will recover shortly, because this loan is used to clear your debts, fulfilling those obligations. As you make your loan payments on time, your score will continue to improve due to your responsible activity.

When you find yourself in deeper debt than you can handle, it’s time to reach out for help. Our debt relief services are here to ease your financial troubles a bit, so you can get on with your life.

Our main goal when negotiating with your creditors is to reduce your debt as much as possible, focusing on finding a manageable number for you. Using our debt relief services, you can expect to have 25% to 50% less debt by the time negotiations are completed.