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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.

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What do you mean by "be in trouble"? You might not know but you are already under tremendous trouble. You cannot borrow your way out of debt. As there are 6 payday loans, one of the lenders may comprehend that you won't be able to pay off and sue you and get a wage garnishment. However, as you have already enrolled in a debt settlement program, see if the company can turn out anything for you. Talk to the representative of the company and tell about your anxiety. Do what they have said and see if they can provide you with any results.


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Last Updated on: Fri, 8 Jun 2018