Pennie Loans Review: 5 Things to Know

Penny Loans, also known as Tri Penny, may be a referral service for debt consolidation programs or loans, rather than a direct lender. The presenter cautions that the programs they may refer clients to are debt settlement programs which involve stopping payments and negotiating with creditors, impacting credit scores negatively, rather than traditional debt consolidation loans which provide upfront funds to pay off debts. Understanding the key differences between these options is crucial for consumers seeking debt consolidation solutions.

Tri Penny's Nature

• 00:00:27 Tri Penny appears to function as a referral service for debt consolidation programs or loans, not as a direct lender. They may receive a fee for referring individuals to debt consolidation or debt settlement programs. Their website's disclaimer and footer suggest a potential relationship with debt settlement companies, which typically negotiate with creditors when accounts are delinquent to reduce owed balances.

Debt Consolidation vs. Settlement

• 00:01:58 A traditional debt consolidation loan provides upfront funds to pay off existing debts directly, without negatively impacting credit scores. Conversely, a debt settlement program involves halting debt payments, leading to accounts becoming delinquent, and negotiating with creditors to reduce the debt. This approach can negatively impact credit scores and possibly result in lawsuits from creditors, although it may benefit those unable to meet current debt payments.

Tri Penny & National Debt Relief

• 00:02:57 The presenter notes similarities between Tri Penny's disclaimer language and that of National Debt Relief, raising questions about a potential connection between the two companies. However, a lack of detailed information about Tri Penny, including a dedicated 'About Us' page, makes it difficult to confirm any relationship or ascertain their specific practices.

Tri Penny Reviews & Costs

• 00:03:28 Tri Penny appears to have limited online reviews on platforms like the Better Business Bureau, Google, and Trustpilot, which the presenter considers unusual. One Trustpilot review mentioned a debt settlement program being offered, consistent with other findings. Costs associated with Tri Penny may be comparable to other debt settlement programs, with customers potentially saving about 25% of their debt after fees. However, the presenter emphasizes exploring alternatives like debt consolidation loans, nonprofit credit counseling, or even bankruptcy, as these options may offer varying costs and benefits.

Advice on Debt Solutions

• 00:04:54 The presenter suggests that if receiving a quote from Tri Penny, consumers should carefully evaluate the breakdown of payments, specifically how much goes toward debt reduction versus fees. Utilizing a debt settlement fee estimator can help compare Tri Penny's fees with other options. The presenter concludes by reiterating the importance of choosing a debt solution that is transparent, meets individual needs, and is truly committed to the consumer's well-being and future financial health.