Debt consolidation business is tricky and who can be trusted? Due to the prevailing deteriorating economic conditions all through the world, there are a number of people looking for debt consolidation and thus secure their finances. Debt solution firms a dime a dozen, however, there are perhaps an equal number who are there just to cheat you and pocket your money and therefore finding a trustworthy firm is a difficult process. There is a way of course; by becoming an informed customer you should be able to find a trustworthy firm to help you through your financial position.
The first step is to know what is involved in debt consolidation. Debt consolidation generally means combining two or more debt payments per month into one payment per month. The debt consolidation firms will usually act as the middle man between the debtor and the creditor and will attempt to lower the interest rate and on occasions even to lower the amount of debt owed.
The next step is for you to research the debt consolidator on the internet prior to committing yourself. Though there are a number of honest businesses there offering their services, you should be aware that there are also other dishonest ones who would swindle your money. So the question is who is trustworthy? You can weed out the bad from the good by examining few factors.
You would have noticed that many debt consolidation firms advertise themselves as non-profit organizations. Claim of non-profit motive give them some sort of legitimacy. But, please read through the fine prints carefully and you will notice that they have found ways to circumvent the tax laws to claim as non-profit organizations. However, this does not in any way make them trustworthy.
Another option to research the companyas legitimacy is to check with the numerous trade organizations online. These background details are always available freely on the internet and should provide you a fair idea about the firm you are researching. The one item that you should be concentrating on is to check if there are too many customer complaints against them and how many of them are still unresolved.
Another item that you could check and find out is the amount of fees billed by the debt consolidation firm for services done. The legitimate ones will usually charge a small process fee, but generally such fees are paid by the credit card companies and not by the consumer. The others whose legitimacy could be a little suspect will have bigger sums hidden and added into your monthly repayments as their fees.
However, before you decide to seek the help of a debt consolidation company, it would be to your advantage to contact the credit card company yourself to try and arrive at a mutually acceptable agreement. You will often find that the credit card company will be quite sympathetic to your plight and may offer a lower rate of interest and even reduce the monthly payments.
For your debt consolidation, therefore, who is trustworthy? Turn yourself into an informed consumer and you will then be able to weed out the scams and find that debt consolidation service you can trust to rescue from your financial difficulties.
The first step is to know what is involved in debt consolidation. Debt consolidation generally means combining two or more debt payments per month into one payment per month. The debt consolidation firms will usually act as the middle man between the debtor and the creditor and will attempt to lower the interest rate and on occasions even to lower the amount of debt owed.
The next step is for you to research the debt consolidator on the internet prior to committing yourself. Though there are a number of honest businesses there offering their services, you should be aware that there are also other dishonest ones who would swindle your money. So the question is who is trustworthy? You can weed out the bad from the good by examining few factors.
You would have noticed that many debt consolidation firms advertise themselves as non-profit organizations. Claim of non-profit motive give them some sort of legitimacy. But, please read through the fine prints carefully and you will notice that they have found ways to circumvent the tax laws to claim as non-profit organizations. However, this does not in any way make them trustworthy.
Another option to research the companyas legitimacy is to check with the numerous trade organizations online. These background details are always available freely on the internet and should provide you a fair idea about the firm you are researching. The one item that you should be concentrating on is to check if there are too many customer complaints against them and how many of them are still unresolved.
Another item that you could check and find out is the amount of fees billed by the debt consolidation firm for services done. The legitimate ones will usually charge a small process fee, but generally such fees are paid by the credit card companies and not by the consumer. The others whose legitimacy could be a little suspect will have bigger sums hidden and added into your monthly repayments as their fees.
However, before you decide to seek the help of a debt consolidation company, it would be to your advantage to contact the credit card company yourself to try and arrive at a mutually acceptable agreement. You will often find that the credit card company will be quite sympathetic to your plight and may offer a lower rate of interest and even reduce the monthly payments.
For your debt consolidation, therefore, who is trustworthy? Turn yourself into an informed consumer and you will then be able to weed out the scams and find that debt consolidation service you can trust to rescue from your financial difficulties.
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