Payday Loan Debt Consolidation Companies are becoming more and more popular. Do they work? Or are they just a waste of time and money?Every day there are close to 13 million searches for payday loan providers on the web. With that figure, it should come as no surprise that debt consolidation companies specializing in short term lending are also increasing their presence online. As more people resort to this type of lending, more people are finding themselves deeper and deeper in debt.Payday loans were designed to be short term lending solutions. Generally, a traditional loan will have much lower interest rates than this type of loan. However, that doesn’t stop borrowers from borrowing.High interest rates are just the tip of the iceberg. Many people don’t understand the structure of short term loans and they are genuinely surprised to learn just how expensive they can be. For every $100 borrowed, a consumer can expect at least $30 in fees. Should a consumer choose to extend the loan beyond the initial loan term? Those fees don’t apply to the principle. Needless to say, it is easy to quickly get in over your head.Debt consolidation companies have helped countless individuals rid themselves of the burden and stress of excessive debt. However, not all companies operate with the same standard of service.Before signing up for a consolidation program, know these things: What kind of BBB rating does the company have? How will the program impact your credit score? What does the company charge for their services-and is that charge more than the cost of handling the loan yourself? Do all of the payday loan companies you have loans with negotiate with consolidation companies? Believe it or not, some payday loan companies will refuse to work with a consolidation company on your behalf.
