You would agree that debt consolidation companies have gained increased prominence owing to the fact that they have helped many debtors to become debt free. Debt consolidation is undoubtedly a good debt solution for you except that you have to play your part too. Once you enroll for a debt consolidation program, it is important to take the process to completion and not leave it midway.
You could seek professional assistance only when you are in a financial mess. Sometimes I personally feel that I don’t mess up my finances intentionally, but rather they just happen. Under such circumstances I would suggest you to take help of a credit counselor who can advice with ways to regain financial stability again.
I told my friends to consolidate multiple debts into one with the help of a debt consolidation company, thereafter the firm you are hiring will take care of your debts. Remarkably the company will negotiate with your creditors on your behalf and convince them to reduce rate of interest. I got mine lowered this way and happily ended up paying a lesser amount each month. You will also get a repayment schedule that will enable you to keep track of your payments and your payments become more organized and structured.
The debt consolidation companies may be for-profit or non-profit making firms. Once you enroll for a debt consolidation program, make sure you don’t miss your payments again. This can be very troubling and can land you in serious trouble. Studies reveal that approximately 30% to 60% debtors in United States don’t repay their debts.
However, lately there are many debt consolidation companies that have come under the spotlight. I would always avoid such companies because they are not worth of what they claim to be. The Federal Trade Commission, state regulators and attorney generals have received several complaints from the consumers that there are few debt consolidation companies that are taking debtors for a ride. These debt help firms promise you that they will be able to help you get out of debt but in reality they fail to live up to their promises.
I almost got myself into their trap because I learn’t that in majority of the cases, the debt consolidation firms charge very high upfront fees; they make verbal promises and avoid writing down their services in paper. The incidence of debtors dropping out of the program isn’t uncommon and when they do so, debtors lose all their cash.
However, not all debt consolidation companies operate illegally. Before I hired a the services of a debt consolidation company, I made sure to check the Reliability report of the Better Business Bureau. This is a must! All the best for your financial recovery!Guest Author : Jason Holmes, Debt Consolidation Care Community.