Every year, millions of Americans look for ways to make ends meet. Payday loans often seem like the best solution for a quick way to secure cash. Unfortunately, it is one of the sure-fire ways to get caught up in an endless cycle of debt. These types of loan often leave consumers in search of the best payday loan consolidation company they can find to alleviate the mounting debt burden.
Simply put, a payday loan is a short-term unsecured loan, often characterized as easy to obtain, but with high interest rates and difficult repayment terms. With more than 80% of payday loans being rolled over or renewed within 2 weeks, borrowers end up stuck in the payday loan trap. Fortunately, there is a way out through payday loan consolidation. When choosing to consolidate, be sure to choose the company that is best equipped to handle your needs.
What is Payday Loan Consolidation?
Payday loan consolidation is combining all of your payday loans into a single one at a lower interest rate and with better repayment terms. It can be achieved by taking out a personal debt-consolation loan, going through a debt-relief program, or with a debt-settlement plan. Consolidation is often an optimal solution to never ending high interest payday loans, but individuals should evaluate their own financial and personal needs before deciding.
Once you decide on loan consolidation, the next step is to find a reputable company. It is necessary to take the time to do your research so you find a credible firm and program you can trust. Here are some things to look for when searching for the best payday loan consolidation companies for your needs:
Who are they? This seems like a simple question, but it is important to know the basics about the company such as:
- How long have they’ve been in business?
- Where are they located?
- Are they a non-profit?
- Do they have the best reviews?
- Are they licensed and accredited (you can check with the National Foundation for Credit Counseling, Financial Counseling Association of America, or the Council on Accreditation)?
How will you be communicating with them? It is important to find a company that is transparent. Ideally, your initial consultation will be in person or through a virtual meeting. You’ll want to know about their customer support and availability, e.g. what are their support hours, are they available through phone, email, or chat, what is their average response time, when is the best time to reach your representative?
Are they transparent about their process and fees? You can tell a lot about a company from their website. Are they upfront about how they handle loan consolidation and their fees? The more information they are willing to provide upfront, the better.
How are their reviews? Today there is a wealth of information online. Check a company’s online ratings and reviews on the Better Business Bureau, Google, the firm’s social media accounts, and the other abundant resources available. You can also check the company website for testimonials or see if they will put you in touch with previous customers to hear about their experience working with them firsthand.
Financial hardship is one of the most stressful things to deal with especially during these trying times. Consolidation is often the best solution to get out of debt created by high interest payday loans. Make sure to do extensive research before working with a firm to make sure it is reputable, and that it will be successful in improving your financial health.
BSI is a non-profit payday relief and loan consolidation company with a national reach. We invite you to contact us for a free evaluation of your current debts and how you may benefit from our consolidation program.