Auto loans are a huge problem to the rising debt in America, and in a recent report, by Experian, a credit and research firm, states that the balance of delinquent car loans is totaled at about $4 billion.
People in their 30s are in the financial carry over from their 20s: still paying off debt for credit cards and student loans, and building savings. However, in this decade of life is when people start thinking about purchasing a home, and possibly starting a family.
In last week's blog in our series we discussed curing defaulted student loans through consolidation. However, consolidation is not always the best choice for someone facing default. Another solution to curing default is to rehabilitate defaulted loans. Thus giving that person renewed eligibility for new loans and grants.
Seeking debt relief from payday loans can be a difficult process. Payday loans are a form of debt which are often known as cash advances or check loans. They carry a fee between $10 and $20 per $100 borrowed, and must be paid back within a set amount of time (typically 14 days). The problem with this sort of loan is that many borrowers are unable to pay off the first loan, causing them to roll the debt over and take out a larger loan to pay off this existing debt. According to the Consumer Financial Protection Bureau, more than 80% of all payday loans are renewed or rolled over within the two week period.