Carlos De Loera | Los Angeles Times
Sometimes consolidating your loans through a private lender can be advantageous in the immediate term but will have detrimental effects in the long term, said Jaylon Herbin, director of federal campaigns at the Center for Responsible Lending, a nonprofit focused on consumer financial protection. The pitch might begin with, “Hey, we can get you low payments right now,” Herbin said. “That may be true, but on the back end, you have to look at what is the interest rate that is coming along with that. If you miss a payment and you get put into default, how long will it take you to get out of default? How long will it be on your credit that you have been in default or that you are in forbearance? What is the delinquency path and can you get back on the right track?”

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