2011/01/27

Reviewing Payday Loan Debt Consolidation Services

In the last few years, there has been a significant increase in the number of companies that offer specialized payday loan debt consolidation services for those consumers who are having a difficult time in managing and paying off their payday debts. Short-term payday cash advances look a very attractive financing option, but there are plenty of negative things associated with them, such as extremely high interest rates, hefty finance charges, unfair collection practices, and other such things. Many borrowers who try to pay off their existing payday debts by borrowing new payday loan end up getting trapped into a vicious cycle of debt, coming out of which seems to be an almost impossible task. A debt consolidation company in such cases can definitely come at your rescue, but it is very important for you to keep in mind that not all of them make the right fit for your case. You will have to be very careful with your selection. Following is a brief rundown on how to go about it.

Does The Company Claim To Be Working As A Non-Profit Organization?

If the company you are considering hiring for payday loan debt consolidation services claims to be working on a non-profit basis, you must first verify the same whether they are genuine in their claims. There are several ways to do that. TO start with, you can request them to show the 501(c)(3) certificate. This certificate is issued to all non-profit business organizations. You should pay special attention to their tax status.

Look At Their Success Record

Sometimes even if a company is a legitimate one and is very genuine in its efforts to help consumers regarding their debts, they sometimes fail to deliver the results they promise. Therefore, while you are researching the payday loan debt consolidation services offered by different companies, you are also advised to review their success record in the past. You can do this by accessing their past records with the Better Business Bureau. A legitimate company must be a member of the BBB. If it is not, you should avoid it. The Better Business Bureau maintains the records of all their member businesses, such as the kind of services they are offering, whether they meet the set business standards, whether there have been consumer complaints against them, and how efficiently they have been able to handle those complaints. A thorough background check will help you make an informed decision whether a particular company makes the right choice for you or not.

Overall, when it comes to reviewing payday loan debt consolidation services, you must take your time to do a thorough research. Do not sign up with just any company you come across. Avoid making your decision on just temptations no matter how attractive their offers look like. Make sure that your decision is based on information, not on temptation.

Filed under Consolidating Payday Loans, Payday Loans Debt Consolidation