Each debt consolidation is different from the others with regard to services and business terms. Most of them will provide you with assistance to pay your bills thereby cleaning up your credit history. There are some that have no intention whatsoever of helping you out of your current situation and are just out to defraud you off your money. It is your duty to protect yourself from such companies by comparing each company based on their promises and services.
Non-profit Versus For-profit - Do not be fooled by a company claiming that it is non-profit, therefore it is legit. The only thing separating non-profit and for-profit statuses is their tax forms. This is not to say that all non-profit companies are fraudulent, many of them contact your creditors and pay them a lump sum in order to significantly lower the fees passed onto you. These legitimate companies will work with people with poor credit ratings and help[ to substantially lower their debt.
Companies that operate with the intention of making a profit prefer to concentrate on customers with good credit scores who are having immediate financial problems for some reason or other. As with non-profit companies, they can reduce your rates for many kinds of unsecured loans, to ease the process of repayment. They're not necessarily greedy, but they do have a bottom line to watch, and you need to deal with them with that in mind.
Monthly Payment Quotes ? To separate the competition and find the company that is best for your situation, gather your current bills, old creditors and interest rates, and the current outstanding balances. Ask for a monthly payment quote based on the information that you collected, and compare several companies.
One of the best ways to establish if a debt consolidation company is credible is to request a monthly payment quote. For instance, you can provide them with information on your creditor?s name, account balances and interest rates. Once you get their quote, you can compare it with payment quotes from other companies. All the quotes should have very little difference since your creditor will give a similar interest rate to all the companies. If any company should have a very low quote, take it as a sign of fraudulent activity.
Services Provided - Every debt consolation company has additional services that they should provide to you such as closing out old accounts, deleting or lowering late fees, and lowering percentage rates on the balance. If a company does not offer information on these services, you should be bleary about their motives.
Be very wary about companies 0ffering things like debt settlement or aid with bankruptcy, too. If they were doing a good job of debt consolidation, you wouldn't need those kinds of services to begin with. With these red flags to steer you away from bad choices, you can easily find a good company that will do the right thing for you as a customer. A little effort now will save you a lot of trouble later on. - 29866
Non-profit Versus For-profit - Do not be fooled by a company claiming that it is non-profit, therefore it is legit. The only thing separating non-profit and for-profit statuses is their tax forms. This is not to say that all non-profit companies are fraudulent, many of them contact your creditors and pay them a lump sum in order to significantly lower the fees passed onto you. These legitimate companies will work with people with poor credit ratings and help[ to substantially lower their debt.
Companies that operate with the intention of making a profit prefer to concentrate on customers with good credit scores who are having immediate financial problems for some reason or other. As with non-profit companies, they can reduce your rates for many kinds of unsecured loans, to ease the process of repayment. They're not necessarily greedy, but they do have a bottom line to watch, and you need to deal with them with that in mind.
Monthly Payment Quotes ? To separate the competition and find the company that is best for your situation, gather your current bills, old creditors and interest rates, and the current outstanding balances. Ask for a monthly payment quote based on the information that you collected, and compare several companies.
One of the best ways to establish if a debt consolidation company is credible is to request a monthly payment quote. For instance, you can provide them with information on your creditor?s name, account balances and interest rates. Once you get their quote, you can compare it with payment quotes from other companies. All the quotes should have very little difference since your creditor will give a similar interest rate to all the companies. If any company should have a very low quote, take it as a sign of fraudulent activity.
Services Provided - Every debt consolation company has additional services that they should provide to you such as closing out old accounts, deleting or lowering late fees, and lowering percentage rates on the balance. If a company does not offer information on these services, you should be bleary about their motives.
Be very wary about companies 0ffering things like debt settlement or aid with bankruptcy, too. If they were doing a good job of debt consolidation, you wouldn't need those kinds of services to begin with. With these red flags to steer you away from bad choices, you can easily find a good company that will do the right thing for you as a customer. A little effort now will save you a lot of trouble later on. - 29866
About the Author:
Susan Reynolds is the webmaster for a leading South African Debt Consolidation Portal. For more information visit: http://www.debtconsolidation123.co.za/
