We have all heard of the saying, “fool me once, shame on you, fool me twice, shame on me.” When consumers find themselves in financial hardship and in need of cash quick, they are often enticed into securing payday loans, thinking it’s a fast, easy solution. After being subject to extremely high finance charges, short repayment terms, and other late fees and penalties, they soon realize they have fallen victim to what some refer to as the payday loan trap.

A viable solution to get financial relief from payday loans and other unsecured debt is through consolidation. However, not all payday loan consolidation companies are created equal. The last thing you want after accumulating mounds of debt is to work with a company that does additional harm; you don’t want to be “fooled” twice.

There are many payday loan consolidation companies, but not all of them are legitimate. Some companies may only increase the debt load of consumers who already have multiple debts and are desperate to get financial relief. Simply put, some companies may act as if they provide legitimate debt consolidation services but the only beneficiary is themselves. Here are the signs that you are not working with a legitimate payday loan relief company:

  • Asking for money upfront. You should not have to pay anything upfront for debt consolidation unless you take out a loan or credit card with an origination fee or balance transfer fee. With legitimate debt consolidation programs, you only need to pay after they successfully reduce your finance charges and adjust your repayment terms. Charging upfront fees is actually illegal.

  • Your representative is not transparent about the terms. Reputable companies should give you a free consultation and explain your options. If a company is not willing to give you key details upfront, including what fees they charge, that are probably not legitimate.

  • The company is not highly rated with the BBB. The BBB is a trusted source to find out if a company is reputable, exemplifies best practices, and operates in good faith. You can find customer complaints and reviews, and will be able to determine if you are dealing with a legitimate payday loan consolidation company.

  • The organization’s website isn’t secure. A simple but often reliable sign that a company is not reputable is if their web address does not have “https” in front of it, signifying that it lacks encryptions that keep your data safe.

  • They guarantee success before evaluating your situation. A legitimate debt consolidation company will not guarantee success until they contact your creditors and come to an agreement on a relief program.

Do Your Research

Make sure to do extensive research when looking for a bona-fide company to consolidate your payday loan and other unsecured debts. Legitimate payday loan consolidation companies will provide you with a free counseling session to determine if you qualify for a debt relief program. They should not ask for money upfront. They will work with your creditors immediately in an attempt to halt all existing interest and fees and consolidate your debt into a new and lower monthly payment that is more manageable.

If you qualify to consolidate your payday loan debt into a repayment program, this action may be the best solution to get out of undesirable debt and on the path to financial freedom.

BSI is a BBB rated company with an A+ rating. We are 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 payday loan debts and learn how you may benefit from our consolidation program.

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Published On: October 14, 2021 / Categories: Payday Loan Consolidations, Payday Loan Relief /

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