Debt Free Zone - Debt Consolidation

The Ups And Downs Of Debt Consolidation

When you find ourself overwhelmed by your bills and you feel like you're at the end of your rope, you may want to consider debt consolidation. The basics of debt consolidation are as follows:

Instead of paying several bills each month, your debts are consolidated into one payment. You will work with your credit counselor to determine a payment amount that's affordable for you.
Debt consolidation can stop your creditors from calling and harassing you
Because the debt consolidation company negotiates lower balances and interest rates for you, more of your payment will go towards principal, which means you will get your debts paid off faster.
It's not as damaging as bankruptcy

Buyer Beware

When choosing a debt consolidation company, you have to be very careful. There are some debt consolidation companies that are not in business to watch out for your best interest. Keep this important debt relief information in mind:

The debt consolidation company you choose should not require any up-front payment. They should offer you a free consultation and give you advice on what the best options are for your situation.
Reputable debt consolidation companies will offer guidance and education about debt management to help you develop good habits and remain debt free.
Beware of companies that suggest you establish a new identity. This practice is illegal.
The debt company you choose will probably have a post office box address, but make sure they have a physical street address as well.
Make sure the company you choose doesn't hesitate to answer your questions.

Here are some questions you may want to ask the debt consolidation company you choose:

What are my options?
How do you determine the amount of my monthly payment?
What do you do with my monthly payment?
How does your plan work?
Will I receive a statement showing that my creditors have received payments?
Can you get my creditors to eliminate finance charges and late fees?
What happens if I cannot make my payments to you?
Is the information I give to you secure?
Do you offer a debt consolidation loan plan?

There's No Such Thing as a Free Lunch

Sometimes you will see offers for free debt consolidation, and that can mean a couple of different things, depending on the company. Fee-based companies charge you a fee, as the name suggests. There are also "free" services that collect a fee or commission from your creditors, not from you. Keep in mind there are also debt consolidation companies whose definition of "free" means that your initial consultation is free. This can be a little bit deceiving because most debt consolidation companies do not charge you for your initial consultation anyway.

To start your search for a reputable debt consolidation company, check with the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. Most honest, decent and reliable debt consolidation companies are registered there. It can't hurt to run them by the Better Business Bureau either. Find a good debt management company and you can enjoy debt elimination in about five years. Sound reasonable? We think so. Debt consolidation loans, traditional debt consolidation...however you want to do it, you are going to get out of this hole and we can help you. Don't put it off for another second. Consolidate credit card debt today and start living for tomorrow.