Lately, the question going around the payday loan news sources lately is, “are payday loan debt consolidation companies a scam?”
The truth is many can be just that. So many companies out there use credit card debt consolidation to do this type of service, and that isn’t the right way to do it.
Most companies will hold onto client money for months and wait to build up a fund. If lenders aren’t dealt with immediately, it creates more problems, and the clients suffer for it.
As well, whenever people are in trouble with money, it alerts the sharks out there. These guys are just waiting to benefit from people’s misfortunes.
Consolidation Companies a Scams or good business?
Many companies will promise you lower or no more interest rates, eliminate legal issues and low payments. They will promise anything to get your business, but many are just out to get your money.
Several non-profit consolidation companies, like the National Consumer Council and Debt Management Foundation Services, have been caught investing in for-profit companies. This was some time ago, though.
Many consumers are finding themselves in more debt than they started with. And damage to credit ratings is also the result of doing business with these fraudulent companies.
What to watch out for
There are ways of protecting yourself when researching consolidation companies. Here are a few tips that can help make your choice a bit safer.
- Be mindful of non-profits and companies that hold your money for months at a time before paying lenders. Make sure you research these companies.
- Always read all the fine print.
- An honest company will supply references and have good reviews from customers who have used their services. Check them out!
- A good payday loan consolidation company will charge you a one-time fee, and all of its intentions will be clearly listed on its contracts.
- Watch out and avoid hidden fees. Ask for the complete cost.
- Check your credit score and make sure you don’t have any lenders reporting before choosing a company.
- A legitimate consolidation company will make all signed agreements with your lenders, available to you. You will keep these agreements for your records.
Summary
There are good consolidation companies that will deliver on what they promise, and we are one of them. We here at Eliminate Payday Loan Debt pride ourselves on being one of the oldest and most reliable companies.
If you are in trouble with payday loan debt and need help, call us toll-free at 877-734-6700 or fill out our form for a free no-obligation quote.
We will talk to you, discuss what we think would be your best options, and help you eliminate payday loan debt!
Please don’t get caught up in the scams that have infested the loan industry, and make wise choices when working with your debt. Peace of mind is right around the corner with the right company!
