Payday Loans Debt Consolidation

How To Choose The Best Payday Loan Debt Settlement Attorneys?

There are thousands of consumers that are badly trapped in a vicious cycle of debts created by predatory payday lending programs. When it becomes almost impossible for borrowers to handle their debt situation on their own, they often turn to payday loan debt settlement attorneys. They are legal experts who specialize in handling payday loan debts with the help of the options provided under the Federal as well as the state laws (the state where the borrower belongs to). Unlike debt consolidation or debt management companies, these attorneys do not just show you a way on how to manage your debts; instead, they provide you an opportunity to pay a much reduced amount of money (as compared to the overall actual due) in full and final settlement of the entire debt. The attorneys first do a thorough review of your debt and financial situation and then they talk to your lenders on your behalf and try to negotiate a settlement deal. But obviously, these attorneys are not there to do charity work; they charge a fee for their service. Following is a brief rundown on some of the basic factors that you must work on while you are hunting for the best attorney to look after your case.

Beware Of Scam Artists

When it comes to choosing the best payday loan debt settlement attorneys, the first thing that is very important for you to keep in mind us that there are plenty of scam artists also, running their unscrupulous businesses in the market. Though there are specific laws to regulate payday lending in almost every state, there is a serious lack of regulation to control the business affairs of the debt settlement attorneys. Therefore, you have to be very careful with your selection.

License

Make sure that the payday loan debt settlement attorneys you are reviewing are duly licensed to offer their services in your state. You can also contact the state bar association and obtain a detailed list of all such licensed attorneys. If the attorney you are consulting with is not in the list, you must not work with them. You can also check past records of the attorneys in question, such as if there have been consumer complaints against them.

Review Their Records With The BBB

Though it is not legally mandatory for payday loan debt settlement attorneys to obtain membership of the Better Business Bureau (BBB), it is advisable that you shortlist only those lawyers that are members of the BBB. The BBB keeps an eye on the activities of their member businesses and prepares a report accordingly, such as whether they meet business standards. They also maintain a detailed record, such as regarding consumer complaints. When you review their records kept by both the state bar association as well as the Better Business Bureau, you can easily get a clear idea on which attorneys you should consult and which ones you should avoid.

Review The Fee Charged By Them

As said earlier, payday loan debt settlement attorneys charge a certain amount of fee for their services, it is very important for you to review the same thoroughly in advance. Depending upon the complexities involved in your specific case and the state you are residing in, the fee can be anywhere between $500 and $1000 (or sometimes even more). In order to get a realistic cost estimate, you must provide complete details about your case to them. In general, they charge a commission, which is a certain percentage of the total amount of money they help you save on your debts. Since they have to earn their commission, they often do not entertain cases, where the amount of debts is very low. So, you are also advised to look into the qualifying criteria for specific debt settlement offers.

Calculate Your Savings

Most payday loan debt settlement attorneys claim that they can help you save a great deal of money on your debts, but considering the very fact that they also charge a hefty amount of commission, you must do a thorough calculation in advance that how much exactly you will be able to save after paying the fee to your attorney. For example, if the attorney reduces your debt by $700 through a debt settlement program, but they are charging $1000, it is obviously a loss of $300, which does not make sense. Go for a debt settlement option only if you can afford the payments and only if it helps you save a decent amount of money.

Depending upon the negotiation skills of payday loan debt settlement attorneys, you may be asked to make a one-time lump sum payment in full and final settlement of your entire debt. But, many attorneys can also convince the lenders to allow you to make the payments (as part of the settlement deal) in easy monthly installments over a specific period of time. Therefore, make sure you sign a settlement contract only if you are sure that you can afford to make timely payment because a further default at this stage can make things really very complicated for you.


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