With the plethora of debt consolidation offers these days, the question is who is trustworthy? With the economic conditions being as is all over the world, more and more people are considering debt consolidation as a way to make their finances stable. There are a number of firms in the market offering debt consolidation services, but selecting the right one is a difficult choice as a number of them are pure scams. The only way out then for you is to become an informed consumer so that you can are able to choose the genuine firm to help you tide over 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 will notice that a good number of these firms proclaim as being non-profit organizations. Claiming to be non-profit firms, they are actually claiming legitimacy to themselves. Donat be deceived, read the fine prints and you will notice how these firms have found ingenious ways around tax laws to claim themselves to be non-profit firms. Such claimants are not all necessarily trustworthy firms.
A better way to check a companyas background is by checking with various trade organizations online. These background checks are free and will give you an idea of the legitimacy of the company. Pay close attention to see if they have many consumer complaints or a large amount of unresolved claims.
Another issue that you should be concerned about is the fee charged by the debt consolidation firm to help you out. Most of the genuine firms will only charge a little as processing fee and in most cases these charges are borne by the credit card companies and not charged to the customer. However, those less trustworthy firms will have charges built into the monthly installments payable by the customer, often as hidden charges.
It will be to your advantage if you consult with your credit card company, before approaching a debt consolidation firm on your own, to arrive at an agreement. In most cases, the credit card company will help you and offer lower interest rate and possibly lower monthly installments too.
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 will notice that a good number of these firms proclaim as being non-profit organizations. Claiming to be non-profit firms, they are actually claiming legitimacy to themselves. Donat be deceived, read the fine prints and you will notice how these firms have found ingenious ways around tax laws to claim themselves to be non-profit firms. Such claimants are not all necessarily trustworthy firms.
A better way to check a companyas background is by checking with various trade organizations online. These background checks are free and will give you an idea of the legitimacy of the company. Pay close attention to see if they have many consumer complaints or a large amount of unresolved claims.
Another issue that you should be concerned about is the fee charged by the debt consolidation firm to help you out. Most of the genuine firms will only charge a little as processing fee and in most cases these charges are borne by the credit card companies and not charged to the customer. However, those less trustworthy firms will have charges built into the monthly installments payable by the customer, often as hidden charges.
It will be to your advantage if you consult with your credit card company, before approaching a debt consolidation firm on your own, to arrive at an agreement. In most cases, the credit card company will help you and offer lower interest rate and possibly lower monthly installments too.
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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