Payday Loans Debt Consolidation

4 Things You Must Know About Nonprofit Payday Debt Consolidation

One thing is for sure – as compared to for-profit consolidation services, the nonprofit payday debt consolidation help is more trustworthy and affordable. But, it is very important for you to keep in mind that nonprofit services are not always provided for free. You will still have to pay fees. In fact, considering the very fact that there are several unscrupulous and fraudulent companies are also present in the market that claim to work as non-profit organizations but charge much higher fees than the for-profit ones, you will have to be very careful while you are hunting for the right debt consolidator. If the company is a legitimate and reputable one with good success record, it is worth paying a small amount of fee for their services; after all, they are going to manage your payday debts in a way that stops its growth (in the outstanding balance) and makes it more affordable for you to pay off the same within a very short period of time. However, screening of even a non-profit organization is very important. Following are some of the basic steps that you need to follow in this regard.

Check Their Legitimacy

When it comes to choosing the best nonprofit payday debt consolidation company, obviously, the first thing that you have to do is to check if the organization is truly a non-profit one and meets also the legal requirements pertaining to the same. For example, you should ask them to show the 501(c)(3) certificate, which proves their non-profit tax status. If they do not show you the proof, but keep on claiming by showing other irrelevant documents that they are nonprofit organization, you should never trust them. Any truly non-profit company will not hesitate in sharing a copy of their 501(c)(3) certificate.

Look For Consumer Complaints Against Them

Just because a nonprofit payday debt consolidation agency is a legitimate one and meets all legal requirements, it does not mean that they are the best choice for you. After checking their legitimacy, the next important thing that you have to do is to check for consumer complaints against the companies in question. The best way to do that is to check their records kept with the Better Business Bureau. But, here, it is important to note that it is not legally mandatory for all businesses to have membership of the BBB, but at the same time, you should also keep in mind that all genuine businesses do take the BBB membership.

The BBB membership is a strong indication that the company is not only genuine but is also serious about providing high quality services at a competitive price. The BBB maintains all the records of their member businesses. You can easily access those records by visiting either the office of the BBB or their official website. Obviously, the best nonprofit payday debt consolidators are the ones that have fewer complaints against them and the one that has successfully resolved the complaints.

Ask Them How They Are Going To Protect Your Credit

The worst pitfall about availing a nonprofit payday debt consolidation service is that it often damages the credit score of the borrower. Therefore, you are strongly recommended to ask those companies clearly that how they are going to take care of your credit report. A reputable company knows how to negotiate things with your payday lenders in a way that negative information does not get reported in your credit report.

Compare The Cost of The Service

Last, but not the least, you must also compare the amount of fees they are charging and how they are charging. Companies that require you to pay their fee in advance are not trustworthy ones. Always remember, as per the US laws about debt consolidation, it is now legally mandatory for all such companies to disclose all the terms and conditions regarding the cost of their services clearly in a written agreement. Therefore, make sure that you go through the written contract thoroughly; you should pay special attention to the ‘disclosure box’ where all the hidden costs (if any) are explained clearly. You must note that it is also illegal for these companies to charge their fee in advance. The laws mandate them to deliver the services they promised first and then they should charge their fee.

Overall, if you keep in mind the above things and do your research accordingly, it will definitely be much easier for you to find nonprofit payday debt consolidation help that is legitimate, trustworthy and affordable.

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