Payday Loans Debt Consolidation

4 Things You Must Work On Before Hiring A Payday Loan Debt Management Counselor

If you are struggling with overwhelming amount of payday debts, the services from a payday loan debt management counselor can prove to be very helpful for you. These counselors are specialized in their job and they know how to manage your debts in a way that should put on a path of achieving a completely debt-free life. However, their services are not free; they charge a certain amount of fee for managing your debts. Therefore, you will have to be very careful while you are hunting for the best counselor. A counseling expert who adds more financial burden on you by charging high fees obviously does not make the right choice. The best counselor for you is the one who saves you more money on your debts than the amount of fees they charge. Considering the overwhelming debts that you are struggling with, you may be tempted to hire any counselor who makes an attractive offer, but you are strongly recommended to have some patience; you must first evaluate the services offered by a counseling agency thoroughly and look out for the possible signs of unscrupulous practices. You will have to make sure in advance that the counselor you are hiring runs a legitimate business and that their services can help you get out of your nasty debt problems much faster and quite conveniently and affordably. Following is a brief rundown on four major aspects that you must work on in this regard.

Affiliations

When it comes to choosing the best payday loan debt management counselor, the first thing you have to do is to find out if the counselors you have short listed belong to an agency that is listed by NFCC (the National Federation for Credit Counselors) or other similar organizations, such as AICCCA (the Association of Independent Consumer Credit Counseling Agencies). Such affiliations are a guarantee in itself that the counselors in question are duly qualified and highly trained for this job. Counseling agencies that are duly affiliated with agencies are also believed to be offering their services at a very low fee. You can even expect them to provide you the first consultation free of cost (though it is not mandatory for them; some of them may charge you a fee for initial consultation as well). Furthermore, the affiliation with the AICCCA and with the NFCC also ensures that the counseling agencies are not unscrupulous ones; they are not just trying to sell their products; instead, they are there to help you solve your debt problems genuinely. You can find a detailed list of affiliated payday debt counseling agencies on the official websites of both the organizations (AICCCA and NFCC). The AICCCA site provides complete details, such as the types of debt management plans a particular agency offer, the exact amount of fee they charge and their BBB (Better Business Bureau) rating.

Recommendations By The FTC

Going through the recommendations by the FTC (Federal Trade Commission) can also help you make an informed decision on which payday loan debt management counselor can make the right fit for your specific debt situation. For example, as per the FTC recommendations, you can find cheap and even free credit counseling services for payday debts Cooperative Extension Service offices, credit unions and even churches. The FTC also recommends you to check some credential items before you sign up with a counseling agency, such as whether the agency has high BBB rating, whether they reject those customers who cannot afford their fee, whether they offer a wide array of options or just push their clients to choose from the limited plans that they have, and obviously, whether the agency is duly affiliated with organizations like NFCC and AICCCA.

The Process Of Consultation

A payday loan debt management counselor may offer consultation via email, over the phone, or in person. Therefore, you are advised to enquire about the same in advance. During the initial consultations, comprehensive interviews are conducted with clients, where the counselor tries to get a clear picture about the debt and financial situation of the borrowers, such as the root causes why they are going through financial hardship, their monthly income and expenses, how much savings they have, whether they follow a budget plan, and how much liabilities and assets they have. In fact, a counselor affiliated with the AICCCA will also try to figure out whether the causes of the financial hardship include problems like addiction or mental illness.

How Do Counselors Decide A Plan For You?

Before you hire a payday loan debt management counselor, you also need to have a thorough understanding about the process that a counseling expert follows to choose the right plan for you. Counselors that are duly affiliated with AICCCA and NFCC will work with you hand in hand to figure out the best plan for your situation. They will educate you thoroughly about the various options that are available out there; they will explain the pros and cons of each option so that you can also make an informed decision in this regard. For example, depending upon your specific case, the counselor may suggest you to opt for a debt consolidation plan, where they will be managing everything while you will be required to make a single consolidated payment to them every month. They will be handling your lenders on your behalf, such as making respective payments to them. However, if your case is not very complicated, the counselor may be able to bring you an easy solution by guiding you on how to save extra sum of money to pay off the debts through smart budgeting. But, if your situation is beyond repair, you may even be suggested to opt for bankruptcy protection. As per the laws, the counselor must provide a detailed a plan of action in writing along with a documented evaluation report.

Overall, the more informed you are, the better decision you will be able to make. So, sit down with a calm head and do a thorough research before you go ahead and sign up for the services of a payday loan debt management counselor.


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