Tips for Getting the Best Debt Consolidation Services
OK now. You’re up to your eyeballs in debt, you’re getting a blizzard of bills and collection notices in the mail, and you’ve given up on trying to rework everything with the creditors on your own.
You’ve shopped around with the various debt consolidation companies and weeded out the ones that aren’t so reputable. This is a big step and a big commitment that hopefully you’ve thought completely through.
What should you look to find the best debt consolidation company?
Obviously, the best debt consolidation company is going to be one that can roll your payments together into a monthly payment that fits your budget. This sounds self-evident, but it’s not always so easy to make it happen that way. You may want to pick a debt consolidation service that is physically near where you live, in case you have to visit them to clear something up.
Look into their fee schedule. If a company wants more than 20% of your monthly payment toward fees (or $50, whichever is greater), it’s probably best to look elsewhere. If they don’t want to discuss fees, or if they change the subject, move on. At this point, you need complete transparency in the process, and that’s what you should expect from a debt consolidation service.
Check on their certification and the training of their personnel. Requirements and licensing all vary from state to state.
Find out if you can pull out of the contract. Unless you have taken out a loan, you should be able to terminate the agreement at any time. If not, be wary.
Find out what bills the debt consolidation service can cover (typically credit cards, medical bills and other non-secured debts). If a debt consolidation company says they can help on your car loan or mortgage, be wary.
Other Perks of Reputible Debt Consolidation Companies and Services
After you’ve thoroughly vetted the choices out there and figured out what debt consolidation service to work with, bear in mind that some debt consolidation companies offer other services as well. CareOne, for instance, is a reputable company that’s been around for a number of years. They offer other benefits such as:
- Secured credit card to get you back into a mode of responsible spending
- Detailed budget planning software
- Discounts on gas, groceries, eating out and other perks for long-standing members
- Legal services directory (with reduced legal fees among participating lawyers)
- Cash-back rewards
- Repayment plans geared towards small businesses in debt trouble
Remember, though, that none of this is going to work unless and until you seriously readjust your spending habits. Quit digging the hole deeper: cut your credit cards in half and throw them away. If it means laying out a weekly budget that goes all the way down to what you spend at the vending machine at work daily, then so be it.
You can pick the best debt consolidation services out there, but it all ultimately comes back to you.