Payday loan consolidation simply means combining all of your payday loan debts into a single loan. When this is done, the borrower makes direct payments to the payday loan consolidation company so that all the payday loan lenders that you’ve borrowed money from will make payments to one company. The most important advantage of payday loan consolidation lies in the fact that the monthly installments you owe on your loans can be greatly reduced and the overall amount you pay back to the debt consolidator will be considerably reduced as well. However, you should know that not all legit payday loan companies offer this service, so it’s important that you’re able to differentiate between these companies.
Payday Loan Consolidation Companies
Legitimate payday loan consolidation companies will always require you to make direct payments to them. This makes it easier for the company to calculate your total debt and interest and to make sure that your payments match up properly. If there are any errors, your payments won’t be processed until they’re corrected. So it’s in the borrowers’ best interests to make sure that the debt management firm you work with is free of any accusations of fraud. In addition, you’ll also want to make sure that you’re able to accurately tell the company what your balance is so that they can begin to process your payments.
One other important factor to look for in a payday loan debt consolidation company is whether or not they charge a fee for their service. Although there are many good companies that don’t charge any fees, it’s definitely in your best interest to make sure that you’re able to find one that does. There’s nothing worse than getting a consolidation loan and finding out that the company you’re working with requires you to pay for services you didn’t expect. Some companies will even offer a money-back guarantee, which means that if you’re unsatisfied, you can get your money back in full. Of course, this means that you’ll have to find another company, but it’s an affordable monthly payment solution that’s certainly worth exploring.