Posts Tagged ‘non profit payday loan debt consolidation company’

How To Choose A Non Profit Payday Loan Debt Consolidation Company?

When it comes to choosing a non profit payday loan debt consolidation company, there are several things that you need to take into your careful consideration. Many people have the misconception that non-profit organizations do not charge any fee for their services, which is not true. Before you start hunting for such companies, you must first have a thorough understanding of what the “non-profit” tag actually means. It only means that the company is not into this business with an objective to make profit. They are just there to assist consumers who are deeply trapped into payday debts. But, even these companies have certain expenses to meet, administration expenses, office expenses, traveling expenses, and others. They have to pay salary to their credit counselors. In order to meet all these expenses, they need money, which they get by charging certain fees for their services to consumers. But yes, you can expect them to charge a much lower fee as compared to for-profit organizations. Following is a brief rundown on some of the basic things that you must do when it comes to choosing a genuine non-profit debt consolidator for pay day loan debts.

Ask Them To Show Their Non-Profit Certificate

As per the laws, there is a 501(c)(3) certificate that is issued to every non profit payday loan debt consolidation company. Therefore, when you contact a debt consolidator that claims to work on a non-profit basis, you must not hesitate to ask them to show the certificate. A genuine company will never hesitate in showing this certificate. In order to be on a safe side, you should never make your decision on the verbal claims made by the companies. The 501(c)(3) certificate will also let you see their tax status. You need to be very careful in this regard because many unscrupulous companies are only masquerading as a non profit with the only objective to attract more costumers.

Check Their Records With The Better Business Bureau

When it comes to choosing a non profit payday loan debt consolidation company, the next thing you have to do is to contact the Better Business Bureau and request them to provide you the past details of the companies you are researching. If the company is not registered with the BBB, it is very much likely to be an unscrupulous one and so you should straightway put them into your “to be avoided” list. Obviously the best company is the one that has minimal complaints against it and has a proven track record.

Find Out How Their Programs Will Affect Your Credit

It is very important for you to keep in mind that if it is reported to the credit bureaus that you are using the credit counseling services of a non profit payday loan debt consolidation company, they will treat it as negative information. The entries they thus enter can be quite damaging your credit situation, as damaging as a bankruptcy can be. Therefore, before you sign up for a program with a specific company, ask them to provide you in writing that how they are going to handle your credit situation. A reputable company will provide its services in such a way that will actually improve your score. For example, they will make sure that the services they are providing should never get reported to the credit bureaus. Besides that, they will also talk to your lenders and convince them that they should not report to the credit bureaus that they are receiving the debt payments form you as part of a settlement offer. The lenders must report it as “paid in full”, not as “paid in settlement”.

Review Fees And Other Charges

One of the most important thing that you have to do while choosing a non profit payday loan debt consolidation company is to review the fees and commissions they are going to charge for their services. The best way to do this is by first narrowing down your choices and short list a few companies. Request a free, no-obligation quote from them. Now, you can sit back and compare the quotes with each other. Obviously, the best company is the one that is charging you a low fee and is still offering you the best services. Here, one thing that is very important for you to keep in mind is that the fees or commission charged by them must not turn out to be an additional financial burden on you. It means they must always charge you less and help you save more on your debts. For example, if they are negotiating with your lender and succeed in getting your debts reduced by $500, but they charge $600 as their fee, this is obviously not a wise deal. On the other hand, if your debts reduce by $500 and the company charges a commission of $300, you eventually save $200, which is not a very bad deal.

You do not have to hurry and choose just any non profit payday loan debt consolidation company that you come across. There are plenty of choices available to you. If you invest some time and do thorough research and comparison shopping, you can easily find a company that is the right fit for your specific debt and financial situation.

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