Debt Paydown Loan
How a Debt Paydown Loan Works
The debt paydown loan is a personal loan that helps you consolidate and pay down existing debt. Just tell us which accounts to pay and how much. If approved and when your loan is issued, we'll send these one-time payments to your creditors directly to reduce your current debt balances. After subtracting your origination fee and the money used to pay your creditors, any leftover cash will be deposited into your bank account. Then, you’ll pay down your new loan with Happen Bank over time.
You can pay down existing credit card or personal loan debt. You can not use a debt paydown loan for student or business loans.
You can pay a part of your debt balance with this type of loan. You can also use this loan to pay your debt in full, just make sure you get the exact payoff amounts from your creditors.
To qualify for the discounted rate, you will be required to use a portion of your loan amount to pay down qualifying existing debt directly through Happen Bank. Once you apply, you will see the amount that you will need to use to pay existing debt, in order to qualify for the discount. When you let us pay your debts directly, we're able to give you a discounted rate because we know you're using the loan to consolidate other debt.
Yes, your discounted rate is fixed and will not change.
After you complete your application, we'll verify your information. If approved, your loan should be issued within 1 to 3 days. Immediately after that, we'll start processing the payments to your creditors. This process usually takes about 3 to 7 days. Please continue making at least the minimum payments on your accounts to avoid late fees until the payments to your creditors are confirmed.
Once your loan is issued, it usually takes about 3 to 7 days to complete the payments to your creditors. You can check the status of these payments by contacting your creditors directly.
No, we will not close your credit card or personal loan accounts. We'll only pay your creditors the amounts you told us in your application, which may or may not pay your balance in full. If you want to close your accounts, contact your creditor or lender.
If approved, your loan will be issued, and we’ll subtract your origination fee and any money used to pay your creditors. The leftover cash will be deposited into your bank account generally within 1 to 3 days.
