Finance, Loan, Debt and Credit.

May 27, 2013

Debt Consolidation- What to Look For

Asking for help with your debt is hard enough, it shouldn’t be made any more difficult by dealing with a consolidation company less pleasant than the actual creditors themselves. When seeking financial help many underestimate the importance of shopping around and finding the right company for you.

Quick fix debt consolidation services are often synonymous for bankruptcy and rarely actually offer credit card debt relief. Caution should also be taken with any company claiming to offer free debt consolidation, as we all know, there is no such thing as a free lunch. Many of these companies target people with ads claiming to offer unsecured debt consolidation but fail to mention that consumers will have to pay inflated fees and expensive interest rates for unnecessary services.

Though there are many legitimate lenders out there, unsecured debt consolidation loans or debt consolidation services that promise to erase pr eradicate bad credit records for a small fee, can actually be a warning sign for fraud. Anyone claiming that debt can be cleared within 24 hours may have tricks up their sleeves you don’t want to be a part of. Be suspicious of anyone asking for an “advance fee” to guarantee loan approval; no legitimate debt consolidation loan will ever be guaranteed. However it is important not confuse advance fees with application fees. And naturally, walk away from anyone offering bad credit debt consolidation through creating a new identity (i.e. anyone suggesting a new social security card is not working in your corner). Finally, don’t waste money on debt consolidation seminars where people often sell “kits” containing items, which look like checks but are in reality, completely worthless regardless of how much you make it out for.

Another word to the wise, whether seeking student loan debt consolidation or just looking for a debt consolidation quote, check to see if there are any debt consolidation laws specific to your state. For example Florida debt consolidation may offer different exemptions then those allowed in California and should be brought to the attention of your debt consolidation counselor. Keep in mind you have the option of securing a mortgage loan or home equity line of credit but these come at a higher risk to the borrower as these loans require your home as collateral.

Always keep in mind that credit card debt consolidation is here to take the stress away, keep debt companies off you back, and help to rebuild your credit. They should work with you on both your payment and time schedule and offer customized debt consolidation help, tailored just to your situation. So don’t just settle for the first company that comes along with a free debt consolidation loan that seems too good to be true. The right debt consolidation company should be willing to partner up with you and answer any questions you may have while disclosing all fees up front. May you have the best of luck in your search for the best debt consolidation company for you as you work through a trying phase of life.

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