Scam Alert - Compare Debt Consolidation Companies Online Before You Sign on the Dotted Line
Some debt consolidation companies are legitimate and will help you to structure how to repay your bills and clean up your credit history while others are in business solely to separate you from your money.?/p>
Before you sign up with any company you can protect yourself by comparing their services, their promises, and their programs.
Non-profit vs. For-profit
Don’t be lulled into a false sense of security because of a debt consolidation company’s non-profit tax status.燬ome of the most fraudulent companies are non-profits.
Although many legitimate companies are non-profit, many are subsidized by the very creditors you owe money to.燭o a large degree the non-profit agencies that work with people with poor credit fall into this category.
Bona fide for-profit companies often charge the same rates as their non-profit counterparts.燞owever, their clientele are generally people whose credit score is still good but are having a hard time paying their bills.
Both for-profit and non-profit debt consoladation companies can lower your interest rates for many types of unsecured loans, such as credit cards, to make it easier for you to repay your debts.
The Real Bottom Line - Monthly Payment Quotes
Before signing a contract, request a monthly payment quote from all the companies you investigate.燱hen you give credible companies information about your creditors, what you owe and your interest rates they should be able to give you an accurate quote.
Ultimately, every company will get the same low interest rates from your creditors.燭herefore the quotes should be very similar.燗 quote that is too low is a pretty good indicator that the company is in business primarily to scam people.
Research the Services They Provide
A caution flag should go up if the company you’re looking at offers either bankruptcy help or debt settlement services.燛ither should not be necessary if you are consolidating your debts.
Also, whomever you hire will have to be constantly communicating with your creditors in order to close your accounts, remove your late charges and lower your rates.
If the debt consolidation company does not go into detail about what they plan to do for you, their main interest may very well be getting their hands on your money instead of giving you the proper service in exchange for their fees.
If you want to avoid even more problems and headaches, take some time now to properly research a number of debt consolidation companies in order to find the one that you are comfortable with prior to entering into a binding agreement.
And to find out more about debt consolidation companies and how to do a background check on debt reduction services, go to http://www.FindReliefFromDebt.com now
(c) Copyright - Mike Irons. All Rights Reserved Worldwide
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Last 5 posts in Debt Consolidation
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- Debt Management Programs - Credit Card Debt Consolidation - March 18th, 2009
- Consolidated Credit Cards - Is it a Good Idea? - March 18th, 2009
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