A nasty divorce inflicts severe financial wounds that take plenty of time to heal. Not only does it lead to the costly liquidation of assets, but also a major cause of plummeting credit scores. If the couple took separate payday loans, it may be difficult to clear them due to high attorney fees incurred in courtroom battles.
Sometimes, the divorce process can be so costly that you resort to borrowing multiple payday loans in order to compensate for cash flow shortfalls. Later on, you realize that it’s impossible to meet your basic needs while paying costly loan repayment installments. However, your biggest fear is getting rejected due to poor credit scores.
The good news is that you can find some certified credit brokers who provide special payday debt consolidation loans for divorcees. In order to get this financial assistance, you need to take the following steps.
Talking to a certified debt counselor will relieve you in several ways. Debt consolidation companies send experienced attorneys to negotiate for new repayment terms with your payday loan lenders. This legally protects you from receiving threatening emails and phone calls from angry lenders.
You may need to visit more than a couple debt consolidation providers in order to compare service charges and qualification requirements. Avoid engaging with exclusively online-based credit lenders since a majority belongs to crooks that will either steal your personal information or overcharge your payments.
During your first meeting with the debt counselor, you’ll need to provide your credit scores, total outstanding payday loans, and monthly income. In addition, the debt counselor also needs to know how long you’ve defaulted on payday loan repayments.
If you’re self-employed, make sure you provide genuine bank statements to your debt counselor. Understating your income will lead to disqualification because debt consolidation companies need honest information to gauge the client’s default risk.
Debt counselors may request defaulters to save up a specific amount of money if they deem the outstanding payday loans to be quite high. In this case, the payday loan defaulter needs to prove their commitment by settling 20-30 percent of the outstanding debts during loan consolidation negotiations.
Your debt counselor can suggest selling your car in order to come up with the required deposit. You may also resort to subletting your guest room and use the rent to accumulate the deposit. Both options require a loss of comfort and privacy.
Consider adopting a simpler lifestyle that will help you stay debt free. For instance, purchasing groceries in reasonably priced markets instead of the mall. You can also switch to using public transport in order to use the fuel money to start a new business. Avoid borrowing payday loans to fund long-term purchases such as mortgages, land or car payments.