A bill consolidation company takes the hassle out of managing your
debt. They handle your monthly payments, negotiations with your creditors,
and repayment strategy for a small fee. Through reduced rates on your
bills, debt management companies can save you years on debt payments.
But before you sign up with a bill consolidation company, make sure they
are skilled and have reasonable rates.
Signs Of A Good Bill Consolidation Company
Bill consolidation companies work to get you out of debt. A good debt
management company will have already established relationships with
creditors, so they will know what the standard rate reduction will be. All
debt management companies will get you the same interest rate reduction
on credit card accounts.
With experience, bill consolidation companies can give you specific
dates on when your accounts will be paid off. They dont even need your
account number to tell you want month and year each account will be debt
free.
Professional debt managers will also be open about their fees.
Companies will either charge you an upfront fee that is partially refundable at
the end of the program or a small monthly fee while you are in the
program.
Evaluating Debt Management Programs
When comparing debt management programs, look for details. You want a
program that can give you specifics about pay off dates and fees. Also
evaluate how fast of a response you get to your questions.
Fees are a cost to consider. Upfront fees can be cheaper, especially if
you get a partial refund at the end. However, many people leave the
program before they are completely out of debt, losing out on services and
the refund. A pay as you go system offers you the most flexibility.
What To Watch Out For
Besides outrageous fees, also watch out for companies that try to get
you to consolidate all your bills. For student loans and mortgages, debt
management companies cannot get you a better rate. But if they handle
the account for you, they will charge you an additional fee.
Be wary of companies that ask for your sensitive financial information,
such as account or social security numbers. These companies are either
scammers or inexperienced.
View our recommended
Debt Consolidators online.
Carrie Reeder owns ABC Loan Guide, an online resource with information about Bad Credit Debt Consolidation and Debt Consolidation Mortgage loans.
