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Some
people are motivated to use debt consolidation because
they know they can save a lot of money by taking advantage of
low interest rates. Others are panicking to find a quick and
easy solution to help them deal with a mountain of debt.
Whatever your motivations, a decision to use debt consolidation
may be the solution, but before you make your decision or
offer detailed personal information to debt consolidation companies
check to see what they have to offer.
Don't use debt consolidation with the first company
that promises to get you out of debt or help reach your goals
quickly. If their promises sound too good to be true, you can
bet they are.
The Better Business Bureau has received tens of thousands
of complaints from consumers that have fallen prey to false representation
and unethical practices of some debt consolidation companies.
Whether you want to use a debt consolidation company online
or deal with a debt consolidation company face to face consider
the following tips:
* Find out if the debt consolidation company you want to deal
with has a good record with related consumer agencies such as
the Better Business Bureau.
* Stay clear of companies that fail to offer you a free consultation
or those that offer a free consultation which includes little
more than a sales pitch that promises to solve your problems
if you sign up with them.You want someone who will thoroughly
discuss your financial situation, needs and options.
* Don't give your business to companies that charge large,
up-front fees to set up or manage the financial option you choose.
A modest processing, application or credit report fee may be
required though.
* Get all your questions answered and find out what the terms
are. Companies that offer high interest rate loans with harsh
conditions and penalties built into the consolidation loan are
often the same high pressure companies that promise you the moon.
* Find out if the staff that you are dealing with is trained
and/or certified to help consumers deal with personal finance
issues such as credit, debt, budgeting, bankruptcy and so on.
You only want to deal with trained, courteous and accessible
staff members.
* Never give out your personal information
unless you are familiar with the company, know why they require
it and can provide it via a secure server if you're communicating
online.
* Be leery of and certainly don't pay anyone that promises
to repair your credit without finding out how they can do it
legally and how you can do it yourself for free.
So is it safe to use debt consolidation?
Yes, it can be. By all means surf around the net to discover
the best places
for debt consolidation. Before you decide on a company,
do a background check, get all your questions answered and follow
the above tips to protect yourself as you work to achieve your
financial goals. |
