How to Find a Reputable Debt Consolidation Company
What is debt consolidation?
Debt consolidation is the process of combining multiple debts at the lowest interest rate possible. Rather than paying different accounts every month, you only have to worry about one. Lower interest means your debt doesn’t grow as fast! More of each payment you make goes towards paying off the original debt owed, also referred to as principal debt, versus the interest accrued every month.
While any debt management program will generally function in the same way, every credit counselling agency is not the same. It’s important to find a good reputable credit counselling agency with the right range of services to fit your needs. The right assistance can make all the difference in how successful you are in getting out of debt. In this sense, choosing a credit counselling company that really fits with your needs is critical to your financial success.
How to know if a debt consolidation company is credible?
Debt can often feel overwhelming, as if you are going through life with a storm cloud over your head. Regardless of the circumstances, debt causes stress that is always in the back of your thoughts.
So what happens if you decide you want to pay off your debt quickly? After years of trying to pay your debt on your own, you may decide to get outside help to get out of debt faster.
Understandably so, it is important to keep in mind that nothing in life comes easy. If you are seriously considering using a debt consolidation company, you will need to do your research and find one that is credible, or else you may find yourself in a worst situation than you were before you started!
Tips for finding a Reputable Debt Consolidation Company
After youfinding a Reputable Debt Consolidation Company nothing in life comes easy. If you are seriously considering using a debt consolidation company, you will need to do your research and find one that is credi you the best services for your specific financial situation. It’s important to remember that you need to feel comfortable with the credit counsellor working with you, since they will represent you and negotiate with your creditors on your behalf. Your credit counselling agency should help you relieve your financial stress, and not cause any more problems!
There are a few things you can do quickly to find out of a company is credible. When searching agencies, follow the following steps:
- Check the Better Business Bureau website – When searching consolidation companies, type their name into The Better Business Bureau. Both for-profit and not-for-profit credit counselling agencies are monitored by the BBB. You’ll also find information on how a company rates compared with other companies, and learn about any consumer complaints or government action brought against the organization. You want to work with a credit counselling agency that has an A rating or better.
- Check if they’re registered – See if the company you’re interested in is registered with a Credit Counselling association or foundation. A reputable company will be concerned about maintaining their status and will make it a priority to be registered with an agency. If a company is registered, you may be able to see feedback given on the company.
- Read independent customer reviews – Company testimonials tend to give you half of the story – the good half. Companies often “cherry pick” their testimonials to leave out negative feedback. You may use an independent third-party website to read unbiased opinions. You can see the good and the bad of each company’s client service to really know what you are getting into.
- Consider using a not-for-profit organization – Look for a registered charitable organization. Some companies may claim to be not-for-profit when they are not, and this certificate is proof that they are registered. A not-for-profit organization will offer a free consultation with no obligation to review all of your options to find the best fit for you, whereas a for-profit agency will likely charge a high fee for the same service. Fees are also kept lower than for-profit companies and included in the monthly cost. At a not-for-profit, learning resources are provided free of charge to help consumers build financial literacy around financial management, to prevent falling back into debt in the future,. However, when dealing with a for-profit organization they may charge for this information, or not have it available at all.
- Look at the agency’s resources and support tools – No matter what company you decide to choose, the debt management program will likely function in a similar manner to provide the end result of helping you get out of debt. What will differ from company to company is the level of support and financial literacy tools supplied outside the program. Decide what resources you need to help you get out of debt and stay that way. Find the agency that offers what you need!
Next Steps Before Choosing a Debt Consolidation Agency
Call a few agencies before you make a decision. Use the steps provided to narrow down your list of potential credit counselling agencies. Then call each agency, and ask to speak with a credit counsellor. Ask the questions you have and see how comfortable you are with dealing with the company at hand. Once you’ve made a few calls, you will have a better idea of which agency is right for you.
At Consolidated Credit, we understand how important it is for you to feel comfortable and confident with the credit counsellor you work with to get out of debt. If you have questions about Consolidated Credit or want to know more about the services we offer, contact us today at to request a free debt evaluation with a trained credit counsellor. You can also complete a request for a Free Debt Analysis online and a counsellor will contact you.