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FAQs2021-09-24T17:27:49+00:00

Frequently Asked Payday Loan Consolidation Questions

How Would a BSI Consolidation Program Help Me?2021-10-25T15:11:43+00:00

BSI assists consumers by combining existing payday loans and unsecured personal debt into one payment monthly payment that will usually be a lower payment amount than your current obligation. Entering into our creditor approved BSI consolidation program will also normally halt lenders from drafting your bank account, while also stopping late fees and penalties and usually all future interest charges as well. Typical monthly payments with payday loans average about half of what is currently demanded.

For Example: The structure of payday loans often will require you to pay back $1000 on every $500 due to high interest rates, difficult repayment terms, and inevitable late fees. This scenario would end immediately through BSI. Our agency would act to set you up with one lower monthly payment on a date of your choice, and most likely stop all excessive fees and interest on payday loans, properly riding yourself of your debt in a faster and more efficient manner.

BSI’s consolidation and repayment program continues to pay your lenders monthly and most importantly, the reduced monthly payment is normally considered an acceptable by the lenders.

Are Payday Loan Relief Companies All the Same?2021-10-25T15:12:24+00:00

ABSOLUTELY NOT! Some online payday loan debt settlement agencies actually hold your money in an account to try to force the lender to negotiate. Unfortunately, these types of hardship companies are all over the internet. You are not defaulting on your debt by your money being held in an account, like so many companies offer online.

*Online Debt Settlement or Resolution Programs, are the quickest ways to a lawsuit, having a judgement filled against you, or your wages being garnished.

BSI is properly registered non-profit organization with well trained counselors who assist consumers with overburdened debt.

What Happens to the Debt Owed to Payday Loan Lenders?2021-10-25T15:12:45+00:00

After you are approved for a debt consolidation program, all late fees and interest accruals to most payday loan lenders will end. You only are responsible for the new monthly payment and interest terms associated with your new consolidated loan.

Can My Wages Be Garnished if I Enroll in the Program?2021-10-25T15:13:05+00:00

You should not expect your wages to be garnished. The program and new monthly payment terms are normally accepted by your creditors as long as your make the required timely monthly program payments.

Can Hospital and Other Medical Bills Be Consolidated?2021-10-25T15:13:24+00:00

Yes, hospital and medical bills can be included as part of the debt consolidation plan. We have strong relationships with these types of creditors and are able to negotiate better payment terms, including lower payments and interest rates, as part of the program.

Should I Consider Filing for Bankruptcy Instead of Debt Consolidation?2021-10-25T15:13:43+00:00

Filing for bankruptcy is usually advised as a last resort, only if you have no other alternatives. Bankruptcies will have a negative impact on your credit report, and can prevent you from obtaining certain types of state licenses, loans, or even jobs. The bankruptcy will appear on your credit report for an average of 7 years, but in addition to that, can permanently blemish your financial reputation as creditors might view you as a high risk. As a result, you might be subjected to higher interest rates or rejected for loans entirely.

Unlike bankruptcy filings, consolidation allows you to pay off your debt and put you back on track to a good financial standing.

 

How Will My Existing Credit Card Debt Be Impacted?2021-10-25T15:14:03+00:00

On average, most consumers who consolidate are paying a 25%-29% interest rate on their credit cards prior to consolidating. After joining our debt consolidation program, it drops sometimes to an average rate of 6-9%. Your credit card balances will be paid down monthly at the new reduced rate, saving you money and ensuring creditors are paid in full at the end of the payment term.

 

Is Debt Consolidation Right For Me?2021-10-25T15:14:28+00:00

As a general rule, if you are able to make monthly payments, even if they are minimum, then you should consider a debt consolidation program. Even if you are currently behind in payments, are in debt collection, or have a judgment filed against your account, we can work with your creditors to set up a plan with reasonable payment terms.

Debt consolidation is often the best solution and a path to financial freedom if your are caught in an endless cycle of debt. If you are able and willing to commit to the monthly payments over the lifetime of the new loan, it is a feasible option. Everyone’s financial situation is different, so it is always recommended that you evaluate yours carefully and even consider consulting with a financial professional to see if debt consolidation is right for you.