Payday Loans Debt Consolidation

Things You Must Know About Non-Profit Payday Loan Consolidators

If you are feeling overwhelmed with the fast growing payday debts, the services offered by non-profit payday loan consolidators may prove to be helpful. Though it is not very difficult to find such consolidators, it is important that you first evaluate them thoroughly and then make an informed decision on which of them make the right fit for your specific case. Following are some of the most basic things that you must be well aware of about such non-profit organizations that offer debt consolidation services for payday loans.

Even Non-Profit Companies Do Not Offer Free Services

Many people have the misconception that non-profit payday loan consolidators offer free services, which is just not true. The non-profit tag only means that they are not into this business to make profit. But, they still need money to stay in this business. They need money to pay salary to their employees. They need money for business administration. And, they get this money by charging a fee for their services. But yes, you can expect them to charge you a lower amount of fee as compared to those companies that are into this business for profit.

Unscrupulous Companies

Many non-profit payday loan consolidators are also unscrupulous ones. They use the “non-profit” tag just to attract more customers, but they in reality charge you a much higher amount of fee than others. That is the reason why it is very important for you to do a thorough background check before you finally decide to sign up with one. One way to do this is by checking their past records with the Better Business Bureau (BBB). Avoid those companies that do not have the membership of the BBB. The records maintained by BBB will let you know if the company you are considering signing up with a duly licensed and reliable one. If there have been lots of consumer complaints against them in the past, you obviously should not do any business with them.

Functions

Legitimate and reputable non-profit payday loan consolidators will charge you a nominal fee and will help you manage your debts in a way that should allow you to get rid of your entire payday debt problems within a very short period of time. In general, when you sign up for a payday loan debt consolidation program, the company appoints a credit counselor to review your case. The counselor negotiates with your lenders on your behalf and convinces them to offer you a favorable repayment plan so that you can make the payments. After all such negotiations and financing a fair and affordable repayment plan with your lenders, the company will ask you to make a single amount of consolidated monthly payment to them and they will then further disburse the payments to your respective creditors.

Do not sign up with those non-profit payday loan consolidators that charge their service fee upfront. Besides that, the fee charged by them must be based on a certain percentage of commission on the amount of money that they help you save on your payday debts.


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