Will I be in trouble if I try to settle my payday loans through a debt consolidation company? Actually, I have already enrolled in a debt settlement program with a debt consolidation company. The consolidation company has asked me to close my bank account and open a new one so that they can take out money from there and try to settle with the lenders. It's not that I don't want to pay them back, I just can't pay the amount immediately. I am confused and don't know what should I do. I have 6 payday loans and don't like to file for bankruptcy. Any advice would be appreciated.