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Debt consolidation – Options for Reducing Your Debt
Studies show that Americans are now saving less than ever before. Along with that, Americans are carrying a heavier debt load than ever. It’s easy for a home loan, a car loan and a few credit card bills to get out of hand, and many people are...

Debt consolidation…Reduce your monthly debt payments now.
Debt consolidation is frequently becoming a very familiar term used in these consumer frenzy-spending times when everything that is available to purchase is often presented with the availability of a hire purchase agreement. While the goods...

How Do Debt Consolidation Agencies Function?
Taking loans is convenient these days and taking multiple loans from different sources is almost a regular practice. Before you realize, you may be burdened with more than you can chew. How do you prevent situation going out of control? Debt...

The other side of Debt Consolidation Loans
"Consolidate all your debts with a low-cost Debt Consolidation Loan". Recently, you will see this type of advertisement in all forms of media. It sounds alluring to consumers who are in debt. Most of the borrowers keep on pondering about the...

Thinking Beyond Debt Consolidation Loans
Planning to devise a permanent solution to the problems of debt? The chances of success, to be exact, are lesser, given the features which characterize the debts. Debts are the result of the disequilibrium in the relationship between income and...

 
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Debt Consolidation Company Information - Compare Debt Consolidation Companies Online

Not all debt consolidation companies are the same. Some are in the business of offering you a service to pay off your bills and clean up your credit history. Others take advantage of your situation and scam you out of your money. To protect yourself from such companies, compare programs based on their services and promises.

Non-profit Versus For-profit

The only difference between non-profit and for-profit debt consolidation programs is how they file their taxes. Some of the largest fraudulent companies claimed non-profit status.

However, there are many legitimate non-profits. Some of these companies are subsidized in part by creditors, reducing fees you would have to pay. This is especially true for agencies which cater to those with poor credit.

Legitimate for-profit companies charge comparable rates, but they usually focus on those who still have a good credit score but are struggling to pay bills. Like a non-profit, they can reduce your interest rates for most types of unsecured loans, making repayment easier.

Monthly Payment Quotes - The Litmus Test

The real litmus test to find a credible debt consolidation company is to request a monthly payment quote. By providing information on your account balances, interest rates, and creditors' names, a debt


consolidation company can give you an accurate quote. Compare this payment with several other agencies.

Since all companies will get you the same low interest rate with a creditor, there should be very little difference between quotes. Anything too low is a sign of a shady deal.

Services Provided

Besides requesting quotes, you should also research the services they provide. Debt consolidation involves constant communication with creditors to lower rates, remove late charges, and close accounts. Companies that fail to mention what they do for you are probably more interested in taking your money than servicing your accounts.

Also be suspicious of companies that offer debt settlement or bankruptcy help. If they are doing their job, there is no reason to use these credit damaging services.

In the end, take the time to research companies to find one you are comfortable with. By making the investment of time now, you can save yourself headaches in the future.

About the author:

See my recommended Debt Reduction Companies online. Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.