Credit Cards - The Inventor Of Debt Consolidation Companies
Like with everything good comes something so overly abused, that turns bad. Credit Cards were invented to help others get by without using cash and being able to purchase goods when you can't find an ATM machine to get money from. But, that all...
Debt consolidation loan as a way out of debt
A debt consolidation loan is a single loan you can take out to cover the rest of your loans. A debt consolidation loan can offer a lower monthly loan repayment amount and less in interest payments. Therefore this type of loan is suitable over your...
Low Interest Debt Consolidation Loans - Getting A Low Rate
Low interest debt consolidation loans can help you pay off your
debt sooner. For the lowest rates use your home equity to secure
a loan. You can also find personal loans that will reduce your
interest payments. Otherwise, transfer your credit...
New Options for Business Debt Consolidation
WeSolveDebt.com provides new ways to stop debt in the current
San Diego, CA--An innovative debt consolidation company
located in Southern California has helped a growing number of
companies and individuals...
UK Debt Consolidation – Helps you Forget Debts Like a Last Night’s Dream.
Debt consolidation is the name given to a very popular process of debt settlement in the UK. Debtors didn’t have lesser choices before the conception of debt consolidation techniques, for settling their debt load. Debt consolidation however...
|Debt Consolidation Services - 3 Things To Watch Out For With Debt Consolidation Companies
Debt consolidation services can provide a valuable service by
lowering your interest rate with creditors, enabling you to pay
off your unsecured loans and bills in a short period. However,
there are companies that would rather take your money than help
you. To avoid such scams, watch out for the following.
Low Monthly Payment Claims
While debt consolidation companies can lower your interest rate
which might lower your payments, they cannot negotiate lower
minimum payments. Creditors no longer accept smaller payments
since 2004, not even for "hardship" cases.
One trick companies use is to lure customers in with a low
quote, only to jack up the required payment in a month's time.
By that time you have already paid out fees, which aren't
Another shady practice is to charge large upfront fees when a
company is claiming non-profit status. Legitimate companies will
either charge a small monthly fee between $14 to $69, depending
on the number of accounts. The other fee structure is to charge
a reasonable fee for each account handled; typically for-profit
companies use this structure.
If you are being asked to pay thousands, especially with a
cashier's check or money order, look for another program.
Offering Debt Negotiation Programs
should also be suspicious of companies that pressure you to
use other programs, such as debt negotiations. First of all,
debt negotiations or settlements usually will not improve your
credit situation. Secondly, you will be charge high fees for
something you can do on your own. And finally, companies who
specialize in debt consolidation have no incentive to see you
flounder with your finances, unlike those offering other
When you are looking for a debt consolidation program, ask
questions about the program, fees, and amount of time to repay
your bills. Take advantage of the internet and research several
Since debt and bill consolidation varies with the number of
accounts involved, you should expect a phone consultation before
you receive any quotes. With your quote you should receive
detailed answers, including pay off dates for each account and
exact fees. And if you feel uncomfortable with the agency, feel
free to walk away. A consultation is not a commitment on your
About the author:
See my recommended Debt
Consolidation Companies online. Carrie Reeder is the owner
of ABC Loan
Guide, an informational website about various types of