Payday Loans Debt Consolidation

7 Things You Must Do While Requesting And Comparing Payday Debt Management Quotes

Comparing payday debt management quotes from a few short listed companies is very important in order to decide which one of those debt relief programs can work for you. Following is a brief overview on the seven most basic things that you must work on in this regard.

Get References

The best way to start the process is to ask your friends and acquaintances if they have ever used the services of a debt management company for payday loans. If yes, you can learn a lot from their experiences. But, here it is very important for you to understand that just because a particular program has helped your friends to manage his or her debt problems, it does not mean that the same program should work for you also. It is very much possible that your situation is very much different. Therefore, despite you get some recommendations at this step, you are still advised to do additional research.

Check The Legitimacy Of The Company

Before you start sending your applications for payday debt management quotes, you must first make sure that the companies you are contacting are legitimate ones in the industry. Your first point of contact in this regard should be the office of your state’s Attorney general. You can contact them and inquire about the companies in question. They will provide you access to the past records of those companies. Other organizations that you may like to contact as part of your research include the American Association of Debt Management, The Better Business Bureau, and the Federal Trade Commission. All these organizations also keep records of the companies offering various programs in the field of debt management.

How Much You Are Being Charged For The Quotes?

You should never pay even a single penny to receive payday debt management quotes. The companies that charge you a fee (no matter how small it is) just to provide a quote are very much likely to be unscrupulous ones. Avoid such companies. The quotes must be provided to you free of cost.

Obligations To Use The Services

Before you send your applications for the quotes, you are also advised to read the terms and conditions thoroughly on the official website of the company. Make sure that the companies do not make you obligated to use the services just because you are requesting for the quotes. Such practices are illegal. So, if at a later stage, a company forces you to use the services just because they send the quotes to you, you can file a complaint against them with your state authority or with the FTC.

Do Not Provide Private Information

You also need to be very careful about the kind of information you are being asked to provide while you are filling out the applications forms for payday debt management quotes. You just have to provide some basic information about your debts and financial situations, such as the number of payday loan accounts you have outstanding in your name, the amount outstanding on each of those accounts, the overall total amount of debt you owe, the names and contact details of the lenders, the interest rates they are charging, and other such things. There is no need to provide crucial private details, such as your social security number and your bank account details.

Compare The Actual Savings, Not The Amount Of Monthly Payments

While you are comparing different payday debt management quotes, your focus should be on how much you will actually be able to save on your debts. The affordability does matter; the amount of monthly payment has to be something that you can pay, but you must also see how much you are being charged for the services and how much exactly you will be able to save. Just because a specific quote is offering you a plan to manage your debts by making a very small amount of monthly payment, it does not make it the best choice. You should look at the overall time period you will have to make these payments for. Sometimes, the monthly payments that are offered are very low, but the actual service fee is very high, which eventually means a higher financial burden on you for a longer period of time. So, you have to be very careful and must do your calculations thoroughly.

Never Pay Upfront

If the payday debt management quotes say that you will have to pay the fee upfront, you should avoid it. You must be very careful while you review the method of payment of the fee. In general, the best payment method is the one where you are required to pay a small percentage of the amount of money the company helps you to save on your debts as their commission on a monthly basis. The debt management companies must try to negotiate with your lenders and convince them to reduce your debts. Their fee must be based on the actual amount of reduction.

last, but not the least, you are also advised not to consult with the companies directly even if you find the payday debt management quotes sent by them quite tempting. Many companies try to play on your emotions and fears. So, in order to avoid such possibilities, you are recommended to get the quotes short listed by you thoroughly reviewed by a third party, such as a financial expert or just a friend.

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Posted in Managing Payday Debt, Payday Loans Debt Consolidation | 1 Comment »

One Response to “7 Things You Must Do While Requesting And Comparing Payday Debt Management Quotes”

  1. sams says:

    Very intelligent and interesting points . Pay day Dent management can be done by hiring a legitimate and genuine company. For doing this, the selection of the company is very important. You can select 4 – 5 companies and can get some information about the companies through your friends, relatives and can check the gentility of the company by checking the registration of the company with Better Business Bureau and the Federal Trade Commission. These companies keep the records of past customers and their results. After that you can decide and request the best company to offer you free quotes. Now you can compare the companies by looking at their charges for providing you the quotes, ideally they should provide you free quotes. If they do not do this you should avoid such companies. One more important thing is that the quotes should be of without any obligation. You should study all the terms and conditions of the company and only then decide for the best. You should be very careful about not providing any private information, just give the details about your financial situations and the details of your debt only.

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