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Canadian Debt Consolidation
Canadian Debt Consolidation Life throws people a number of challenges often on a daily basis and unfortunately, some of those are financial challenges. The loss of a job, an illness and many other situations can make paying off loans difficult...

Debt Help - Debt Consolidation Loans Versus Credit Counseling
Debt consolidation loans are a do-it-yourself process, whereas credit counseling helps you to make financial decisions. If you already have a financial plan, then you probably don't need the services of a credit counselor. However, if you have...

Getting a Debt Consolidation Loan with Bad Credit
If you've ever tried to get a debt consolidation loan with bad credit, then you know that it isn't always easy. It may seem odd that you can have such trouble being approved for a loan designed to help people who are in debt, but many lenders can be...

Know Your Debt Consolidation Options
Nobody likes being in debt or the additional stress it adds to their life. Additionally, most individuals have some form of debt that is weighing heavily on them and they simply want to get rid of it. If you are in this situation then you might...

What is Debt Consolidation?
Here is a useful guide to what is Debt consolidation. For some people with credit problems debt consolidation may be an answer. Debt consolidation is borrowing enough money from one lender to pay off all your debts. When you consolidate: You make...

 
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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.