There are many different options when it comes to getting help with your payday loan debt. One option is to speak with a bbb accredited payday loan consolidation company, such as Encompass Recovery Group, which can provide debt consolidation services that can save you money. Another option is to use a credit counselor or debt management program. But before you decide which option is best for you, it’s important to understand how these different options work and what the pros and cons are.
Debt Consolidation Companies
A credit consolidation company can consolidate your existing unsecured loans into one affordable monthly payment, which may include payday loans, personal loans and credit cards. They also can work with your creditors to reduce your interest rates and get you out of debt.
These services can help you get a lower interest rate and make your payments easier to manage, but it’s important to choose the right one. You want to find a company that offers a free consultation and will walk you through the process.
Beware of Payday Scams
The payday loan industry is full of fraudsters and scammers. These companies take advantage of borrowers who are suffering from extreme financial hardship and don’t know where to turn for help. They might claim to offer debt consolidation or debt settlement services, but in reality are just lead generators that collect contact information from borrowers and then sell it off.
Avoid these companies by choosing a reputable lender who has a good track record with the Better Business Bureau, a reliable business address and a phone number that works. It’s also a good idea to check their company page on the BBB website for current ratings, customer reviews, complaints and warnings.
CashNetUSA, SpeedyCash and PayDayOne are some of the most popular payday loan companies that are bbb accredited. They’re all long-standing payday lenders that have served millions of customers over the years and have a Google PageRank of 5 (very high).
Some of these lenders also offer a debt consolidation service, which can be a great option for people who have multiple debts and are in serious financial trouble. However, it’s important to read customer reviews carefully and be aware of certain common mistakes that scammers often commit.
Beware of Debt Settlement Scams
The payday debt settlement industry is rife with companies that are misrepresenting themselves. These companies may promise you a large lump sum of cash that will pay off all of your payday loan debt, but in reality the settlement company is only taking out new loans and using these to pay back the old ones.
They may also try to trick you into paying more than you actually owe in order to secure the lump sum, but in the end this will just add to your total debt load and cause further issues down the road.
If you’re looking to consolidate your payday loans, look for a reputable, BBB-accredited company that offers a free evaluation. They should have a clear process for applying for a loan, have clear guidelines and repayment requirements and a working phone number. You should also read the BBB’s consumer complaint database to see if there have been any complaints filed against them and if the complaint was resolved successfully.