Payday Loans Debt Consolidation

5 Things You Must Do To Evaluate The Credibility Of A Pay Day Loan Debt Consolidation Company

It is not easy to put your faith in a pay day loan debt consolidation company because of the presence of so many unscrupulous companies out there. You are strongly recommended to do a thorough research and comparison-shopping before you decide to sign up with a specific firm. There are plenty of factors that you need to take into your careful consideration in order to ensure that the company you are signing up with can be trusted. Following are the five most important factors to work on.

Review The Overall Cost

The first thing you have to do is to review the overall cost thoroughly. These types of services do not come for free even if they are being offered by a non-profit organization. Some people assume that non-profit agencies do not charge anything, which is not true. It is very important for you to keep in mind that a legitimate and reputable pay day loan debt consolidation company never charges more than 10% of the total amount of outstanding debt. Read the fine prints thoroughly to ensure there are no hidden charges involved. Some companies charge a flat fee. Whatever is the case, the overall cost must be affordable to you. The main reason why you are looking out for these services is because you want to manage and pay off your debts easily, in an affordable manner. If the cost of the services is not affordable to you, it does not make any sense to sign up with such programs. Going for an expensive program will only mean pushing yourself into a deeper financial crisis.

How The Debt Payments Are Reported To The Credit Bureaus?

When it comes to choosing the best pay day loan debt consolidation company, the next big thing you have to look into is the way the company reports to the credit bureaus. When you try to settle debts through these types of programs, it often has negative impact on your credit score because of the way the debts payments are reported to the credit reporting agencies. There still can be a way to avoid this negative impact if you can convince your creditors to report about your debt payments to the three major credit bureaus as “debt paid in full”, not “debt paid in settlement” or “paid as per debt management program”. You must ask the consolidation company in advance if they are capable enough to convince your lenders for such reporting.

Qualification And Certification

In order to evaluate the credibility of a pay day loan debt consolidation company, you must also research how efficient and qualified its employees are. Are they duly certified by the International Association of Professional Debt Arbitrators (IAPDA)? This certification is a guarantee in itself that the professionals who are going to work for you are highly qualified with in-depth knowledge of the laws governing the debt consolidation industry.

Membership To The Local Chamber Of Commerce

A great way to ensure the fair conduct of a pay day loan debt consolidation company is to make sure that it is a member of the local Chamber of Commerce. In order to be on a safe side, you should also make sure that the local Chamber of Commerce the company is a member of is also an accredited member of the United States Chamber of Commerce.

Do A Thorough Background Check

The best company for you is obviously the one that has a very good past, with an impressive success record. Any company that fails to provide you information on demand is not right for you. The services must be quite transparent to avoid any unpleasant surprises in future. An easy way to check the past records of a company is to find out if it is affiliated with the Better Business Bureau or any other reputable pro-consumer group. The BBB and other such organizations maintain past records of companies affiliated with them. It means if there have been consumer complaints against a company, you can easily get informed about the same when you contact BBB and ask for details about it.

A thorough research work on the above five points will help you ensure that the pay day loan debt consolidation company you are signing up with is not only highly credible and reputable but is also the one with the best success record in these types of services. It will definitely take some time to do such an in-depth study, but it is worth spending that much time if you do not want to become a victim of scams.


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Posted in Payday Debt Services, Payday Loans Debt Consolidation | 3 Comments »

3 Responses to “5 Things You Must Do To Evaluate The Credibility Of A Pay Day Loan Debt Consolidation Company”

  1. [...] This post was mentioned on Twitter by Rajesh Anand and Rajesh Anand, Eli. Eli said: 5 Things You Must Do To Evaluate The Credibility Of A Pay Day Loan Debt Consolidation Company http://goo.gl/fb/x4jy1 [...]

  2. john says:

    Magnificient way of convincing the need of today-Saving Money. If you are already going through the problem of repayment of your debts, the solutions are here in the article. These solutions are very simple and easy to adopt. It should become mandatory for all the family members to follow a budget plan strictly. Do the screening of your expenses and try to search the holes through which your money is leaking out. Saving can be start from a small step like switching off the TV. It will save the electricity and you do not have to pay the cable bill also. If you need a big thing to purchase, just give yourself some time and then think one more time about it. Most of the time, we do not in the need. We just feel like it so you can save your money by rethinking. If you have some unhealthy habits like smoking, Drugs etc you can say Good Bye to these habits and can save money as well as your health. So, it is very important to start saving from today. It is very sure that if you follow the above mentioned tips, you will evaluate the credibility of a Pay Day Loan Debt Consolidation Company.

  3. Sams says:

    Informative Process. Pay Day Debts does not seems to be easy to pay back and a big amount of debt gives a lot of tensions and increasing interest can change the debt into a huge amount very soon. Pay day loan should be taken if there is no other option left. Debt Consolidation is a one option of getting out from the debts. One should always check its advantages and disadvantages. The first thing is to decide the consolidation company. There are so many companies present in the market. The Competition is really tough; you have to search the reputable and genuine company for you. Most of the companies have very bad track record so beware of them. You can shortlist three or four companies and then search their records. Collect the other information’s about them like their fee structure, their terms and condition about the reporting (like how they will report to the credit bureau), their membership or from where the companies are affiliated. After reading thoroughly this data, you can select the best company for you. You may trust blindly if the company is accredited from BBB (Better Business Bureau).

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