When one finds themselves in over their heads in payday loan debt and the collectors are threatening legal action it is time to check out the many payday loan debt relief programs out there.
There are many of them available online but they are not all equal and they must be checked out carefully as many of them will just take your money and run!
Let’s take a look at the different programs, how they work and what to watch out for when looking for a debt relief program!
How These Companies Work
Most payday loan consolidation programs work on the basis of taking over your loans and negotiating a lump sum balance of all your payday loan debt.
A good consolidation company will get the amount of interest owed lowered by up to 75% and have all collection actions stopped immediately.
They then negotiate a payback plan with the loan companies and distribute your payments among them until the loans are satisfied.
If they are working with a single loan company they will apply the whole payment to that loan until the negotiated amount is satisfied.
You will be making payments directly to the consolidation company and they will manage your payday loan debts for you.
This is all done for a one time fee that is affordable and worth it’s weight in gold as it takes away all of the headaches involved in having a payday loan company seek collection actions against you.
Picking A Good Company
When choosing a company to work with keep in mind, not all consolidation companies are the same.
When looking for one you must ask exactly what they can do for you and how fast they can do it.
You want a company who will take action right away and stop the collections and accruing interest.
Ask if they can start working on your debt immediately.
Same day companies are the best ones to do business with as they treat your loans like their own and have your best interest at heart and they put a plan into action as soon as they are hired.
They will go the extra mile in getting your amount owed reduced considerably and set you up with your repayment plan as soon as possible.
Many companies hold your money for up to six weeks before they apply it to your loans and this is not desired.
Be sure to ask how soon they will apply your payments after receiving them.
Credible Companies Do Exist
There are a ton of bad companies on the internet but there are also some very reputable ones available.
We work with a consolidation company that cares and takes your debt over and treats it like their own.
Our choice is a company who has been in business consolidating payday loan debt for many years and is reputable. They come with many references of happy people who have eliminated their payday loan debt and are now free from the payday loan trap.
They come with many references of happy people who have eliminated their payday loan debt and are now free from the payday loan trap.
Summary
While many companies come and go look to those who have been here from the beginning of these loans as they will help you and relieve the pressure involved with having out of control payday loan debt.
Shop around and ask the right questions:
- How much is your fee
- How soon do you start the process
- How quickly will you have a repayment plan in place
- How long do you hold payments before applying them
Do you have references
Following these guidelines and getting the important information will help you find the consolidation company that is right for you!