Payday Loan Consolidation Companies
Payday lenders have been around for quite some time but payday loan consolidation companies haven’t been around for that long. Now there are a few legitimate payday loan consolidation companies that deal with payday loans. But not all consolidation companies operate the same way.
The process of payday loan consolidation works in essence by taking your total debt owed and coming up with an affordable monthly or bi weekly repayment schedule which will pay off your payday loan debt in the specific time frame agreed upon between the lender and the consolidation firm.
Our firm, Payday Loan Debt Relief offers the strongest and most legitimate model for paying off your debt. We, unlike many other payday loan consolidation companies, do not hold your money for two or three months then approach the lenders hoping for a settlement.
Since our firm takes over your debts, we aggressively negotiate with these payday lenders immediately upon your enrollment in our program so that when you make your first lender payment, lenders are being paid.
Based on our research most companies treat this form of consolidation similar to a debt settlement model.
This means when you make your monthly or bi weekly payments some of the consolidation companies may hold onto these payments for a period of 2 or 3 months then try to approach the payday lender to negotiate a pay off.
This type of model is bad for two reasons:
1. These payday lenders are very aggressive in their collection efforts and if they don’t hear from you and get paid in a reasonable time frame they will call your cell, home, your work and your references constantly.
2. Also this puts the payday lender in a very defensive posture and will be less willing to work with your consolidation company to set up a re-payment structure.
Some companies will take your payments for the first few months and all that money you pay goes towards their fees first.
The trouble with that is if you owe storefront lenders and they loaned you a certain sum of money why would they be willing to accept less from you? That doesn’t make any sense.
These lenders can also sue you, depending on your state, if they are not dealt with in the proper time frame and a manner that reputable consolidation companies will do. That is the main reason you need to hire a firm that has the expertise to handle these lenders from the beginning of your enrollment.
When you have numerous payday lenders it is important to keep them from constantly calling and harassing you when you are part of a consolidation program. People are dealing with enough stress as it is and if it can be kept to a low level or eliminated completely that is the best.
So if your lenders aren’t receiving any money for a period of 2-3 months they will never work out any arrangements with a payday loan consolidation company that holds money.
Solid and professional companies, like Payday Loan Debt Relief are pro active and highly aggressive in their approach with the lenders.
This means once the clients start to make their payments the company will have already negotiated and received a re-payment schedule with the payday lenders. This will obviously make the lenders more likely work with the consolidation companies such as they are with our firm.
It is also imperative that you perform thorough research when talking to these companies this way you know you are getting the best value for your money. Also note, if you fall behind in the payments to the company your debt with the payday lender will revert to its original status.
Our firm is proud to be one of the very few legitimate payday loan consolidation companies that offers a lender approved re payment plan that works to your advantage. See why we have been voted the most professional and successful payday consolidation firm out there today.
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