Debt Consolidation Organizations - Where Are the Trusted Ones?

Debt consolidation organizations are usually non-profit organizations. They will take your accumulated debt and combine it into one low monthly payment. They claim to work with your creditors to take away late fees, negotiate a lower monthly payment and lower interest rates. This can provide peace of mind and stop harassing phone calls. These organizations have debt consolidation counselors to help you through the process and to help you make the best decision possible.

The first tip for finding a trusted debt consolidation organization is to spend time doing research. There are a lot of companies out there and you have a lot of choices. This can seem overwhelming, so be sure to check reviews on line on sites such as Epinions. There are consumer care organizations have online ratings of different companies. Debt consolidation companies have FAQ sections on their websites for people like you! If the company offers a “free consultation”, take advantage of it. Collect all of your credit card bills before you call.

The second tip is to talk to people who’ve used debt consolidation organizations in the past. Word of mouth is a reliable source, especially since people can tell you what it was like to work with a specific company. They can tell you the good and bad points from a first hand perspective. Watch for “red flags” like hidden fees, higher interest rates and counselors that didn’t have a focus on customer service.

The third tip to pay attention to the “fine print”. You could end up paying more in the long run. A lower monthly payment could mean that your debt will accumulate more interest. Pay attention to the “fees” that you might be paying. Debt consolidation organizations might be taking as much as 10% of your monthly payment as a “contribution” to their non-profit organization.

The fourth tip is to remember that debt consolidation isn’t a “quick fix.” Many debt consolidation organizations state in their policy that your credit card accounts will be frozen so you won’t be able to accumulate more debt. The counselors should advise you about changing your spending habits and living within your means. This is not the time to open another credit card or to purchase a new car! The fifth tip is not to make a decision in a panic. Take the time to do research, talk to others and make a wise decision.

By consolidating your debt, you are taking a step to take control of your financial future. By following these tips for finding a debt consolidation company, you should be able to begin the process of reducing and eliminating debt with an organization you can trust.