Payday loan debt settlement – How it helps you reduce your debt load
Payday loan debt settlement is a process wherein you can clear your debts by paying 40% to 60% of the total loan amount. This option helps you get out of payday loan hell without filing bankruptcy. Read on to know more about it.
How to settle payday loan debt on your own?
Read through the following lines to know about how you can settle your payday loan debt on your own.
- Go through the state laws: Do you know whether payday loans are legal in your state? Do you have any idea whether or not your lender has the license to do payday loan business in your state? If not, then check out the state payday loan laws. If payday loans are illegal in your state, then you’re not obligated to pay the interest rates and other associated fees. All you need to do is pay the principal amount.
- Negotiate settlement: If payday loans are legal in your state, then contact your lenders and inform them about your inability to repay the full loan amount. Offer a realistic settlement amount to your lenders. If the payday loan lenders accept the settlement offer, then sign a written contract with them after reading all the clauses.
- Make payments: Make sure you pay the settled amount by the scheduled date. It will be better if you can pay the amount through money order, debit card, etc. Keep the copies of the payment receipts with you for future references.
Tips to select good payday loan debt settlement company
If you’re not able to settle your payday loan debts on your own, then you get help of the settlement company. The debt negotiators will negotiate with your creditors on your behalf after enrolling into the settlement program. Have a look at the following tips that may help you select a reliable payday loan debt settlement company:
- Check the service background of the debt settlement company
You should check the profile of the payday loan debt settlement company before deciding to work with them. Check the success record of the company. You should also compare the track record of the particular settlement company with that of others. Make sure you work with a company which has good track record.
- Calculate the total settlement cost
You should ask the debt negotiator about the total settlement cost. Check whether you can afford the total settlement cost. If the payday loan debt settlement company is charging a fee which is exceptionally high, then look for other companies.
- Check the company accreditation
Find out whether the settlement company is accredited with United States Chamber of Commerce, IAPDA, BBB, and other national organizations. If the company is not affiliated with any of these organizations, then avoid singing any contract with them.
Finally, scan through the client testimonials to know whether the company offers satisfactory services to the customers. If most of the customers have grievances against the company, then it is better to not work with them.
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