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Payday loans may be more expensive for borrowers who may have poor people's credit reports, as lenders may view them like a higher risk for default. Payday lenders can also report delinquent borrowers to credit reporting agencies, potentially damaging their credit scores and so that it is more difficult to allow them to access credit later on. Some payday lenders may offer rollover or extension options, that allow borrowers to increase the loan repayment period of the borrowed funds in exchange for additional fees and interest. Some payday lenders may necessitate borrowers to deliver proof of income, such as a pay stub or bank statement, as a way to qualify for the credit. Debt settlement involves negotiating with creditors to reduce the quantity of debt owed, in exchange for the lump-sum payment or a payment plan. Borrowers who will be considering a payday loan should be aware of the potential consequences of default, including law suit, wage garnishment, and damage to their credit score. Payday loans could possibly be more expensive for borrowers that have no additional options for covering volunteer expenses or any other charitable contributions. Borrowers who're considering a pay day loan should be alert to the potential impact on their credit standing and financial well-being. Payday loans will often be advertised as a way to get via a financial emergency or unexpected expense.

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