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Must Ask Questions for Debt Consolidation Companies

 

When you require help with the accumulating payday loans, you can easily contact a debt consolidation company who might provide you with payday loan help. Debt consolidation is a process of paying off all the small debt you have with a bigger loan. There are several advantages of taking help for payday loans with a bigger loan. Not only is the amount of interest you have to pay each month cut down by more than half, it also makes your financial situation stable. Debt consolidation companies handle the money for you and take care of your finances, paying off your creditors till all the debt is paid off. The process might seem easy and fuss free but if you get into a deal without prior knowledge you can find yourself in a bit of a confusing situation. When payday loans pile up, one is obviously concerned and want to take off a bigger loan to clear their debts. Before you sign up with a debt consolidation company, there are a couple of questions you should clarify with them to ensure that you are getting the best deal, financially.

Must Ask Questions for Debt Consolidation Companies
  1. How old is the company and your record of debt consolidation
    When you are choosing a company, you would definitely want someone who can provide you most efficient payday loan help. The whole point is that you are taking the help of someone who is more qualified to deal with your financial situation. The company that you go to needs to have an idea of what they are doing, they should be experienced in debt consolidation. Now company might be new, but if they have a good record of debt consolidation you should be able to bank on them. Now obviously at least a 2-5 years’ experience is safe with millions of dollars in debt consolidation within this time for the company to be credible enough for you to get help with payday loans from them.
  2. The costs involved
    So the companies that are set up for consolidation your debt should lawfully charge you no money at all for services provided, as you will be paying them after the debt is settled anyway. You should never pay a company any fee at the start, if they are asking for that is illegal and they are not the company to trust. Be very careful in inquiring about all the charges that you will have to pay, total after the debt consolidation. Sometimes, they tell you an amount at the start and keep adding to it, so be blunt with them.
  3. How will you settle the debt?
    When you need help with payday loans, you go to a debt consolidation company so that the debts could be paid off as soon as possible. So, when you go to a company to ask them to help you with that, you need to ask them how they will be paying your creditors. This is a test for the company because if the company says that they will be paying the creditors every month then the company is not one you should hire. The whole concept of debt consolidation is that you consolidate my payday loans and make my finances stable. As long as you have loans hanging you will have to keep paying the interest. The right answer is to pay the creditors all the money at once and close the debt.
  4. An estimated time period and costs
    When you approach a company for payday help the company cannot tell you on the first day the time it will take to settle all your debts, but they are bound to give you an estimate. If you take too much time settling the debts, one of your creditors might go to court or cease property to settle the debt. Settling early obviously helps you save a ton of money that would have gone into paying interests so a good company will try to pay off creditors as quickly as possible. The company will charge a fee which really depends on the amount of debt you have incurred as a higher amount will take longer time and more effort to settle. It can range between 15 to 25 percent. Settle on fee before you hand over your finances to avoid extra charges.
  5. Where is my money
    There is quite a sum of money involved when the company is working towards settling your debts, and there are rules and regulations involved concerning the status of this money. There are several fraudulent companies that try to scam their clients out of money by not telling them the truth about where their money is. Your money needs to be in an escrow account and the money should be under the charge of the person lending it to you. The account must be FDIC insured and you should have full control over it and not the debt consolidation company. Companies like Solid Ground Financial already put these things on their brochure and are upfront about it, but many companies don’t, so be aware. You can close the account and withdraw money from it anytime. The company should give you the freedom to discharge their services when you feel fit, without any charges.
  6. What are the alternatives?
    When you go to a company for debt consolidation, they should talk to you about the options that are available to you apart from settlement. It depends on your finances, if it is really bad you are unlikely to get a loan from anybody to settle the payday loans. In that case a good company would certainly ask you to consult with a lawyer about cases of bankruptcy. If you file for bankruptcy any and all loans are wavered off if the ruling in in your favor. Not everyone can carry out debt consolidation and if your company offers no other options, get out. Get payday loan help now from a company that checks all the boxes.