As the name implies, legitimate payday loan consolidation companies have one thing in common. That is, they are not banks, credit unions or lenders. They are lending institutions that pay off or consolidate your loans. You might have lost your job and unable to keep up with the payments for a personal loan repayment. It is not uncommon to struggle to get by in this tough economy.
Narrowing down the choices of loan
You can avail a payday loan consolidation company for all or some of your debts. One advantage is they take care of all the companies, bills and administration related to your consolidation loan. It can be another financial mess you are trying to clean up. In order to find a debt consolidation company, use the internet. Most lenders will have an online banking website with applications. Find a few and compare different rates and fees.
By doing online research, you will narrow down the choices. Of course, they may vary from one lender to another, so make sure you read the fine print. Then apply and follow up on the company. Most consolidation companies have a good reputation for accurate information. Read up on the company, whether it is local or online, so you can find out if they respond to your questions promptly. Make sure you understand what is being requested of you, including payment plans and documentation of your income.
Understanding how hard to earn to pay loans
You will need to show proof of a checking or savings account. This will tell them your income. Check the company’s website for a list of trusted accounts. Also, make sure the companies do not charge an origination fee. A payday loan consolidation company can consolidate and withdraw the loans from your account for you. In many cases, it can take several days to complete the process. You will not have access to your money, but your obligations will continue as before.
If you have several consolidated accounts, some companies will allow you to have several different accounts opened. There are advantages and disadvantages to having more than one account open, depending on your specific situation. In most cases, it is better to have a single account than having a number of accounts with different loans. Remember to choose a reputable company that offers the lowest interest rate, so your out-of-pocket expenses are reduced. Make sure you understand what fees you will be expected to pay on your loan before you agree to anything. Find out what is a minimum balance and what is a daily maximum balance. Some companies will require you to maintain a certain amount of money in your account every day.
Process your application on the loan
The payday loan consolidation company may charge fees for a management fee, a deposit and a management fee. Make sure you understand what each fee is before signing a contract. Once the paperwork is completed, you can expect the company to process your application and consolidate your debts. Check the status of your accounts to make sure you will be notified if your debts are settled. Once you feel confident you understand the process, sign up for the services.