How Do I Find a Good Debt Consolidation Service?

When beset with financial worries, it can be tempting to latch onto the first solution that seems to promise relief. Since not all debt consolidation services are equally helpful and effective, it is worth taking a little extra time to investigate several companies.

Many people are not comfortable discussing money problems with friends and family, which can make it more difficult to get a personal recommendation. The local Better Business Bureau often has a list of accredited credit and debt counseling companies, with information about any complaints that have been filed against the company and whether those complaints have been resolved. The State Attorney General's office may also have information about which companies are licensed to operate in the state, and whether there are outstanding complaints against them. On-line forums where people in the same geographic area are discussing financial matters are another helpful resource, as people who have already been through this process may be able to recommend the company they used or offer helpful advice.

Once three or four companies have been identified and checked with the Better Business Bureau and the state to make sure they are legitimate firms with few complaints, it is time to look into each company's offerings in more detail. If they have an extensive web site, that is a good place to start, but making an appointment to speak with a staff member will give the best idea of what a particular service has to offer. Good companies will not promise a quick fix or a radical reduction in the amount owed. They will provide the ability to pay all creditors with one payment, and will negotiate reduced interest rates and advantageous payment plans. The cost of the service should be reasonable, and the staff helpful and friendly.

While the repayment of large financial obligations is never easy, a good debt consolidation service can provide peace of mind and a clear idea of how long the process will take.