Thursday, October 10, 2013

Do You Need Debt Consolidation?

By Tommy Tuiee


If you have ever looked in the phone book or searched online, you would know that there are a lot of debt relief firms all claiming to want to help you. Some of these services claim to offer extremely low rates. You will definitely need to remember that if something seems to good to be true, it probably is. If you want to find the best debt consolidation company for your needs, you need to stay on the look out for 3 key points.

Sometimes, debt consolidation lenders will require some collateral or for you to put money down on the loan. The problem is that most people that are trying to get a consolidation loan don't have money to put down. If you come across a loan company that boasts unbelievably low interest rates even for individuals with terrible credit, you need to be very careful. The company you are looking at could possibly be scam that is only looking to get a down payment or collateral out of you. Usually, when things seem too good to be true, they are.

People that are severely in debt often feel like everyone is out to get them. Because of this, you should work with a debt consolidation firm that is compassionate and understands what you are feeling. They will be the hero that saves you from the onslaught of phone calls and nasty mail that your creditors thought were so nice. The firm you choose should also be knowledgeable in the laws around the area that you are located. If the firm doesn't know the specifics, look elsewhere.

This won't entirely protect you from being ripped off, but it is a very powerful tool. The companies that have ties with the Better Business Bureau will lay out all of your legal options, including those surrounding repayment of debts, settlements, and can coach you towards practicing financial repair.

Overall, consolidation loans are really only one part of a multi-pronged strategy. The consolidation service needs to have strong negotiating abilities so they can reduce your total debt. If you are looking into a company that can't negotiate a settlement for your debts, you should look elsewhere.




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