How to choose a Debt Consolidation Company
Your debt can be managed as long as you are willing to do what it takes. The important thing to do now is to find someone or company to help you. If your bills are backing up and have out of control debt, a Debt Consolidation Company may be the solution. First you need to learn about the process and company before choosing one.
Debt Consolidation is just one of the options open to you if you are in financial trouble. There are a number of things that you can do to get out of debt that don't require an outside agency, but if you are hitting a brick wall with creditors than a Debt Consolidation company may be the best option.
These companies are designed to offer finanacial advice and develop a plan to manage your debt. This includes but not limited to suggestions for raising money,consultation on your finances,talking to creditors on your behalf,debt settlement,and debt consolidation loans. Most of us look to our bank for some type of loan but if they turn you down, this company could be of some assistance.
1) Check with accredited agencies for information:
The last thing you want to do is get caught up in a scam. The Better Business Bureau should be able to provide you with a clear look at the integrity of a debt consolidation company. Luckily the US Government is cracking down on scam artist increasing your chances of finding a reputable company. Another agency that can help you in your research is the International Standard Organization (ISO).
2) Check the credentials of the staff:
Anyone working in this area of expertise needs to have special training in the field of debt consolidation. They should have at least 2-3 years experience. Request a staff member with 5-10 years experience and have spent sometime at the agency.
3) How long has the company been in business?:
Fly by night companies pop-up everywhere. I wouldn't trust any company with less than 10 years in business unless they come highly recommended.
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4) Ask about their program for debt consolidation?:
It could be a debt program that involves debt settlement as part of consolidaton. What you want is a program that works with the creditors to figure out a "Win Win" payment schedule.
Debt settlement means that the creditors agree to a lower total payout. That goes on your credit report as a debt settlement which could make future creditors wary.
5) The organization or agency may say that they are a not for profit agency but they can still charge fees for their services. Beware of possible hidden charges the company slides in to get more cash from you.
Sometimes,the debt situation warrants a third party. When choosing a debt consolidation company, ask as many questins as you need to in order to feel comfortable with their services. If you're not comfortable move on to the next agency.