Usually, no. The only way a pdl can affect your credit score is when the lenders report it to the three major credit bureaus (Experian, Equifax, or TransUnion). But, usually the lenders report it to Teletrack, which is only used by the payday loan lenders.

Teletrack is a database used by the subprime lenders and payday loan companies. The lenders report your payment performance to Teletrack. So, if you default on such a loan, it may be difficult for you to take out another pdl. It’s not a bad thing though, especially, if you’re trying to get out of payday loan debt. Teletrack doesn’t show up on your credit report and it doesn’t affect anything else.

However, it is a database that can be used by banks to report:

• If you’ve had any NSF checks unpaid on your account
• Your account was closed with a negative balance
• You had fraudulent activity on your account

These things can make it difficult for you to open a checking account at any other bank.

You should know that a pdl can show up on your credit report if it’s unpaid and the lender sends it to a collection agency. Even then, it has to be a legal payday loan. Be careful while taking out a pdl from a storefront lender as most of them have a legal business. But, many online lenders are doing illegal business in different states.

In case of an illegal pdl, you just have to pay the principal amount. However, you may face legal trouble if it’s a legal pdl and you don’t repay the outstanding balance. So, check the status of your pdls and take necessary steps accordingly.

When you don’t repay your legal PDLs, the lenders can sell them to debt collectors. Most of the collectors report the unpaid loan to the national credit bureaus, which can blemish your credit report and hurt your score.

If you have allowed your PDL lender to withdraw money from your bank account, but want to stop it now, you can do it. To do so, you have to revoke your ACH Authorization.

• At first, inform the company and write to them that you want to revoke the ACH Authorization.
• Then, write to your bank to revoke the authorization. Most of them have an online form to fill up.
• To be on the safer side, inform your bank to stop any automatic payment by opting for “Stop Payment Order”

As per the federal law, you can dispute any unauthorized transfer from your bank account to any other account.
However, you should know that even if you revoke automatic payment of a PDL, you still owe the unpaid balance on the loan and need to find a solution to get out of it.

No, your PDL lender can’t send you to jail for not paying back your payday loan debts. But, a legal lender can take you to court by filing a case against you if you’re not able to repay the loan. If the lender wins the case and gets a judgment against you, then your wages can be garnished. However, Federal law limits that not more than 25% of your wages can be garnished. The value is decided on the basis of the borrower’s disposable income, the amount left after mandatory deductions, or “the amount by which your weekly wages exceed thirty times the minimum wage”, whichever amount is lower. And, anytime, you can take out a loan to repay an existing debt and stop wage garnishment. Read more: What to do when illegal payday loan lenders trap you

No, all payday loans are not legal. You can take help of a consolidation company to repay the principal amount of the illegal payday loan. It is because, in case of an illegal payday loan, you just have to repay the principal amount.

The Statute of Limitations (SOL) on payday loan laws are governed by the state. It denotes the time within which a lender can sue a person in the court. In most of the states, the SOL period is between 4-6 years after the last payment is made on the account.
Be clear of debt myths to handle your loans in a better way.

Opting for it is good if you are able to make the agreed upon monthly payments on time. It will help you repay your dues in full at a reduced rate of interest within a definite time period.

It depends on whether or not you seek help from a reliable consolidation company.

Here’s a checklist on how to choose a good pdl consolidation company:

• Ask recommendations from friends and relatives
• Ask whatever you want to know
• It has a good rating in BBB (Better Business Bureau)
• It doesn’t charge anything before providing service

You can be assured about good companies if it has satisfied clients and is into business for about 3-5 years.

The PDL lenders will most likely stop calling you if they are assured that you will make the required payments and they receive one or two monthly installments.

There are lenders who offer debt consolidation loan to help you consolidate your existing loans. But whether or not you can use it depends upon the payday loan balance you owe. Say if your debt amount is around $2500, you won't get a consolidation loan. Such loans are usually applicable to the higher amount of outstanding balance.

If you've been dealing with storefront payday loans, there's the option to get an installment repayment plan or Extended Payment Plan (EPP) from the lender as per payday loan laws.

However, the repayment plan applies only to 8 states such as Alaska, Alabama, Florida, Illinois, Michigan, Nevada, Oklahoma, and Washington. The plan is offered by lenders when an account reaches the maximum number of rollovers allowed by the law and the debtor declares that he's unable to continue with the payments.

In states, where the EPP does not apply to storefront payday advances, you can either consolidate your loans or follow the steps to do it yourself debt management depending upon which is easier for you.

It is safe if you take the help of a reliable company. In most cases, the lenders will agree if a consolidation company negotiates with them. When you approach such a company for help with your unpaid loans and enroll in a program, the counselor negotiates with the lenders to reduce the interest rates so that it becomes easier for you to repay the payday loan.

And, if you take out a consolidation loan, then you can repay the PDLs instantly.
You need to find out the best way to get out of payday loan debt.

Yes, you can take out a personal loan with a relatively low-interest rate to consolidate payday loans along with other unsecured debts. You can also enroll in a payday loan debt consolidation program to repay dues with complete professional help.