As the final months of the year wind down, it is a good time to evaluate your financial health. Especially considering personal debt in the U.S. is at an all-time high, with almost 80% of American households having some type of debt. For those who have unsecured debt in the form of payday loans, considering payday loan consolidation can be a big step in the right direction.
Payday loan consolidation is designed to combine all of your debt into a single payment at a reduced interest rate. The end goal of payday loan consolidation assistance should be to wipe out your debt in a more affordable way and less stressful manner.
Choosing a Payday Loan Consolidation Company
It can be intimidating when searching for a payday loan consolidation company. Unfortunately, the debt relief business is no stranger to scams. The saying if “it’s too good to be true, it usually is” can apply here. There are several warning signs to look out for when researching payday loan consolidation companies:
- Claiming to be a non-profit when they are not
- Guaranteeing to settle debt for “next to nothing”
- Charging upfront fees for a consultation and/or services before reaching agreements with your creditors
- Using aggressive sales tactics to get you to act quickly
- Offering a “quick fix” solution when a debt relief program often takes some time to complete
- Go with your gut; if something feels off, it probably is
With payday loan consolidation, success largely depends on a good working relationship with creditors and showing discipline in managing your money. So now that you know what not to look for in a payday loan consolidation company, what characteristics does a reputable company possess? Here are some of things to look out for when evaluating payday loan consolidation companies:
Stability: How long has the company been in business?
Who are they: Are they non-profit? Are they properly licensed to work in your state?
Ratings, reviews, and recommendations: Are they highly rated by the BBB? Do they have high ratings and reviews and positive client testimonials?
Cost and fees: Do they offer free, no obligation consultations? Are they transparent about fees associated with loans or other debt-settlement programs?
A reputable payday loan consolidation company should put you at ease, provide you with clear answers and options, and be known for integrity and success. Their counselors should be trained and certified by a state or national organization.
If you are one of the many who are in need of payday loan consolidation assistance, now is the perfect time to look into consolidation. Finding a reputable company to work with and avoiding scams is key, so make sure to take the time and research needed to make an informed choice.
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 check for availability in your state then contact us for a free evaluation of your current payday loan debts and explanation of how you may benefit from our consolidation program.