Saturday, January 23, 2010

Being sure of the right debt rescuers

Guest post by JENNIFER LOHAN

Debt consolidation is often a useful means to get rid of your high-interest unsecured debts like credit card debt and personal loans. The credit card companies are earning billions of dollars in penalty fees. With the raise in interest rates on credit cards, the situation of credit cardholders has become worse. Many individuals are looking for a reliable if not, the best debt consolidation company since they’re facing difficulties to even keep up with their minimum monthly payments, not to mention the cumulating interest rates. Number of bankruptcies is at a record high and people are desperately looking for solutions to get out of debt. This article would help you choose the right debt consolidation company. Choosing the right company is essential to successfully eliminate debt promptly.

Do your homework

When you’re looking for a good debt consolidation company, you must do your homework well. There are so many companies out there and some of them are just scams that would prey on you to take your money without offering any valuable services. Check with the Better Business Bureau (BBB) to see if there are any complaints against a particular consolidation company you’re thinking about. If there are many complaints or grievances, just turn your back on them and walk away.

Check the background

It is essential that you check the past performance of a consolidation company. Some companies are just fly-by-night companies and change their names too often. They target unsuspicious consumers to make money. You mustn’t go for a company that has a history of less than three years. Remember that it needs time to form reputation. Choose a company with an extensive history.

Pressure tactics

This is certainly a warning signal. If a representative of a consolidation company tries to make you sign an agreement within a very short period, then you have to look out. A reputed company wouldn’t do this. Debt consolidation is not an easy procedure and you don’t have to hasten to arrive at a decision. Furthermore, consolidation mightn’t be right for everyone.

Don’t choose a lengthy program

You mustn’t select a program that is going to run more than three years since you can’t gain from it in the end. The sooner you pay off your debts, the better it is for you and you also can save plenty of money.

Ask questions

You can ask your family members or friends about their experience with a particular company. Knowing their experiences might help you choose the right company. Ask the company about their monthly payments and interest rates and compare them with others.

Always keep in mind that the right debt consolidation company would offer you a tailor-made program that would fulfill your requirements and remain within your means.

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