We at the CFRB are bringing you something entirely different. Something we felt could be useful for those of you out there looking for a good debt consolidation company.  We bring to you 4 tips for choosing  a debt consolidation company. These certainly are not the only tips, but we feel that these are probably among some of the most important. It doesn’t matter if you live in Los Angeles or if you live somewhere in Nebraska, you might have debt in your life, and are probably wondering what to do and most importantly where to go.  It’s a real interesting thing to see how many debt consolidation companies are out there today. In Reviewing many debt consolidation companies, I’ve come across tons of debt consolidation companies with similar names all providing the same services. Of Course, none of them had the ratings that some have. We live in a time where there’s a growing need for debt management programs and consolidation solutions. People are swiping left and right, buying things they can’t afford; burying themselves in mountains of debt. While I don’t condone the excessive use of credit cards and other forms of debt creators, It’s good to know that there are programs out there  that consumers can take part in to help relieve some of the pressures of debt. One of the big problems that consumers are having is finding the right program that fits there needs. Large companies are aware of this growing epidemic, and all they see is an opportunity to take advantage of people and make more money. They’ll offer one rate just to get you in, and then they’ll pull the rug from you and stick you with a rate you can’t afford. So how do you know you’re not going to get taken advantage of? Here’s a few tips that should help empower you in your search for the right debt consolidation program.

Tip 1: Understand Your Needs

 

Not every debt consolidation program is the same, and neither are the needs of the consumer. There’s really two main routes you can take when considering help from debt consolidaters. It’s all related to how your debt is going to be handled. Realistically, both routes sort of end up at the same place. Which is you paying off your debt.  It’s all just a matter of how you want to handle your situation.

  1.  Get a Debt Consolidation Loan and roll all of your debt up into one monthly payment.

Pros:

these sort of installment loans look great on your credit. Which is always a plus. If you’re able to get a loan at an attractive enough rate, it is a great way to pay off your higher interest debt, which in turn improves your credit score. Another benefit is only having to send out one monthly payment instead of several to different places.

Cons:

Getting approved for a debt consolidation loan can sometimes be incredibly difficult. If you have already been struggling to keep up your debt, you may not qualify a loan of such magnitude. If you make the mistake of taking out a loan and your credit cards run back up, the ditch you fell into will just get deeper. It can be a slippery slope, if you’re not careful.

2. Choosing a Company that will Negotiate Settlements on All of Your Debts.

Pro:

Depending on the company, they might be able to get creditors to accept less than what you. If they’re really good, they could even get credit card companies to stop charging you interest. Most of the time, companies will be able to get you a better settlement than you could have gotten on your own. Having someone to represent you against the big and bad creditors can be such a relief.

Cons:

In partaking in these agreements, you most likely won’t be able to use your credit cards. Which can be a drawback, but you really shouldn’t be using them any way if you’re trying to clear them. You also can’t apply for new cards until your previous debt is completely paid off. Another con would be the lack of leniency these companies have. If you miss one or two consecutive payments, the company may just kick you out of the program. Resulting in you negotiating with your creditors on your own. So this really only works if you make all of your payments on time. It’s a very Ride or Die method of doing things. though I suppose it does get things done.

Tip 2: Compare Rates & Reputations

You’re going to want to find a company that is going to give the best possible deal. Which is completely natural and understandable. You’re in debt and you’re drowning, and you can’t afford high interest rates and large monthly payments. The first thing you have to remember is that you can shop around. You don’t have to sign with the first company that you come across. In fact, I recommend you don’t do that. It’s pivotal that you find a company that can offer you a rate that you can afford. In talking with the company representatives, you’ll have to look past the sales  facade and think for yourself. Don’t let any company strong-arm you into signing a deal that isn’t right for you. Before you sign anything with any company, find out exactly how you are going to be charged and how it will affect your debt payments. Debt Consolidation Companies that Deal with your creditors for you have different ways of billing. Most companies will just charge you monthly, like we discussed before. Though, don’t think that applies to every company.

Another thing that is pivotal when deciding on what debt consolidation program is right for you is the reputation and credibility that a company has. I’d probably go as far as saying it’s just as important as comparing rates and finding good prices. You have to remember that you are a person in debt looking for a debt consolidation company. All you are to most of these companies is business. They most likely don’t care about you. All they care about is making money. Which to some degree is fine. A business is a business. They’re goal is to make money. So, you have to be remarkably careful. Especially with companies that may offer you great rates at first. I can’t tell you how many disasters I’ve avoided by simply doing some online research about a company that I was considering. It really pays off in the long run to take 5 minutes and really get to know the company you’re considering.

Tip 3: Read The Fine Print

The Fine print section of any contract is usually all the ugly and hidden details that companies feel might discourage you from signing with them. It’s called the Fine Print Section for a reason. They make it as small as legally possibly, so you won’t bother reading it, and you’ll blindly jump into bed with them. That isn’t the case for most companies. Sometimes you’ll find that the fine print sections is actually completely legitimate. Regardless, you should still look it over. Just to be safe.

No Matter which kind of debt consolidation company you’re dealing with, there’s always going to be fees involved. not only with Debt Consolidation companies, but that applies to every company you’re ever going to do business with in your whole entire life. It even goes beyond that. This lesson can be applied to literally everything in life. It’s important to be well-informed. Especially if it is involving something that can affect you. I’m sure you’ve been in a situation that has gone sour in some way and you look back and you wished so greatly that you would have taken the time to inspect every aspect of that situation before making a decision.

It can be sort of tricky to be in a constant state of vigilance when walking into a place that you know is going to do everything they can to get you to sign something and lock you in for a deal that lasts for years. I had this happen to me when I went to go buy my first brand new car. They welcomed me with warm words, gave me some coffee and something to snack on. They took me out to the lot, showed me all of the cars, and treated me like I was going to qualify for every single one of them. I Ate it all. Every single bit of nonsense. In the end, I drove out of that dealer with an incredibly high car payment on a car that is now upside down. I wasn’t able to remain vigilant, and I let them take advantage of me.

 

Tip 4: Get it All in Writing

This tip is probably the most important out of all 4 tips.  It’s also unfortunately one of the biggest mistakes that people tend to make when entering any sort of deal with a company. There’s a sense of trust that a person has that in any company that is legitimate. This stems from the trust that is ensued in each and every one of us for our own government. Which is a great thing. They Government is here for a reason. It’s the kind of trust that people will not question or ask for further information if it has the government seal of approval. That kind of trust is translated into everything, including business deals with companies. Here’s an example of what I’m talking about. If a random guy on the street who looks sort o shady asks for your social security number, are you going to give it to him? Of course you aren’t! God only know what that man is going to do with your social security number. If company you’re signing up with asks for your social security number, home address, date of birth, and email address, are you going to give them that information. Yes, you probably are. Why? Because they are a company, and they can be trusted. At least, that’s the general impression that people have.

The scary part is, most companies know this. Sometimes companies will even go as far as asking for a verbal authorization. If you’re asked for that, do not agree to give them one. You’re just setting yourself up for trouble. You’re running the risk of putting them in a position where they might not have any accountability. Make sure you look over your contract before jumping into anything. If you can’t do it in person, have them email it to you. Having a copy of your contract puts the power into your hands. You have to remember that you have rights as a consumer. You can question a company fi they are doing something that smells sort of fishy to you.

Conclusion

I hope these four simple tips will transcend your search for a debt consolidation company, and find applicability to your own life. Now in retrospect, I see that these tips apply to any kind of industry. my hope is that you’ll see the most important thing that sort of resonated throughout the entirety of this list of tips.  That is the importance of being well-informed. You have to remember that knowledge is power. If you want to gain any sort of advantage in a field, you must learn about it first. Remember also, that the consumer is the life source of all companies. regardless of the industry they are in. Meaning, you, the consumer is the most powerful player in the game of monopoly that we are all playing. Check Our Resources page for a list of trusted companies, which have received 4 stars or better. Check Our Reviews page for more insight into trusted companies. Check our site for other Payday loan reviews. its great place to become more knowledgeable about the world of finance, and will shed some light on some of the scams out there. Also, keep your eyes peeled for more reviews and tips to come.