Debt Consolidation Companies: Common Pitfalls to Avoid

It's difficult not to notice the incredible growth that there has been in companies offering debt consolidation programs and solutions over the past few years. At first, debt consolidation companies were some of the biggest advertisers on the internet and there are now more loan consolidation TV commercials than we've ever seen before. However, a great number of these debt consolidation companies are now being sued by numerous attorney generals, the IRS, and the FTC over their supposed ‘non-profit’ status.
One of the worst debt consolidation companies has actually had a federal lawsuit filed against it and the FTC and five individual states have filed separate lawsuits against the company. This company declared Chapter 11 bankruptcy but the reality is that they have not gone out of business themselves, they have simply changed into so many other companies that they are most likely around in some form.
Interestingly, many companies do not call themselves ‘debt consolidation companies’ anymore because of the bad press that all of the legal action against this first company generated. You may hear of ‘debt negotiation’ companies or ‘debt settlement’ companies who are basically ‘debt consolidation companies’ who are using illegal tactics and should be avoided.
You can check out any debt consolidation companies, or any other company for that matter, with your local consumer protection agency and the Better Business Bureau in the company's location. Be aware that debt consolidation companies with a good rating may mean absolutely nothing. In fact, over 75% of the complaints received by the Better Business Bureau do not count against the company's rating if the complaint is considered resolved. The Better Business Bureau has no authority to investigate complaints against debt consolidation companies, nor resolve them.
One particular word of advice is to avoid any debt consolidation companies who have a registered address in Maryland or Florida. This is because these two states do not regulate debt consolidation companies. There are so many debt consolidation companies available that if you really feel that this is the best course of action for you then avoiding those in Maryland or Florida should be simple and will save you the worry of dealing with a disreputable organisation.
You can find a number of websites that offer a customer review section for debt consolidation companies. This is worth checking out to see if customers of any of the debt consolidation companies that you are considering signing up with have had problems dealing with them in the past.

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Debt Consolidation Companies – Why Pay When You can Do-It-Yourself?

You are already in debts and the last thing you figure is to pay for the service of debt consolidation companies or programs that will only further increase your debts.
You are not wrong by thinking in that manner. “You DO need to pay for the service of debt consolidation.” But you are not completely right either. “So why pay that extra amount of money that can use to repay your debts instead?”
The ultimate objective of debtors is to clear their debts with the shortest amount of time and effort. And the reason why people pay for debt consolidation services is that they can help them achieve their debt clearing objective – Simple!
Why is that so??
Debt consolidation companies have existing working relationships with many of the creditors nationwide. Most of these creditors are therefore more willing to work with them to help their clients to clear their debts problems.
Credit card companies also prefer to work with specialized debt consolidation companies because it free up their burden of debt collection, drafting repayment agreements and terms paper work.
It is not surprising to find that debt consolidation companies can most often get their clients better repayment terms like interest rate reductions, elimination of late fees penalties, and a lower monthly payment.
On the monetary aspect, debt consolidation services are worthwhile if the gains on the debt repayment package are more the cost of their services.
On the other hand, there are also some other advantages to use debt consolidation services.
You do not need to give up all your credit cards, and may include only those credit cards that you wish to consolidate. And the most important part is that you will get personal financial budgeting advice and guide to help you plan your monthly budget.
All in all, a person who uses the service of debt consolidation companies will most often get out of debt years sooner than those who try on their own.

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Debt Consolidation At Low Interest Rate!!!

No doubt, every borrower tries to stay away from unnecessary debt burden. How debts can be managed without affecting monthly budget- this is a constant endeavour of all borrowers that always insists them to look for an option. In that case, the option can be easily found through debt management program. And undoubtedly debt consolidation is an important tool of debt management program.
Debt Consolidation process stresses to consolidate all debts into one single debt. In this process, mainly a separated loan is provided to borrowers that covers all the current debts of them. And later borrowers have to pay only on that single debt instead of numerous ones. Thus, by consolidating all debts into one, a borrower can easily manage his all unpaid debts.
But the question is that whether these loans are available at low interest rate or not? If a person wants to consolidate his all debts in secured way, then automatically lender will provide him the loan at lower interest rate, as the presence of his property covers the risk of lending money. But still, at the time of finding a debt consolidation loan at low interest rate, one should keep the following things in his mind…
Collateral choice:
Always remember that your collateral will be prioritized at the time of deciding the loan rate. High valuable collateral will ensure you to avail a debt consolidation loan at a lower interest rate. So cautiously choose collateral. As collateral, home or other real estate property, automobile go well. Besides you can use other valuable objects against the loan amount.
Record of your credit score:
Flawlessly it can be said that as a good scorer, you will get extra edge when the interest rate will be decided. So, be sure about your credit score. Evaluate, whether it is considered as a good score or not.
Shop around for the low rate of interest:
At the same time, do not stick to one lender. Keep your eyes on other lenders and their deals as well. Visit various lending companies, banks, financial institutions in person, ask for their different loans quotes, then carefully compare them and apply for the best deal.
Besides traditional lenders, your searching can be done over the Internet too. Many lenders, these days, are providing debt consolidation loans at relatively lower interest rate. You can easily get all their loan quotes by simply clicking the mouse. Moreover, it will help you to save your valuable time.
Bad credit scorer, like CCJ’s, arrears, defaults even late payment also can apply for low interest debt consolidation loans. Furthermore, due to the increasing competition among the loan lender, a borrower also can avail low interest debt consolidation loans in unsecured form. In that case, a bit search is mandatory.
Debt consolidating is helpful for borrowers in true sense. Not only managing debts properly, but with these loans borrowers can set aside all the untimely and harassing calls of lenders and wave off all debt barricades.

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Debt Consolidation and Financial Practices

Millions of Americans are suffering from debt problems. Nationwide people are afraid to answer the phone in fear of collectors trying to claim their debts owed. Financial insecurity is a major cause for depression. This worry can tear apart even the strongest families and destroy lives. People strive for a fresh start, but how to do so is the question.
Believe it or not, but the average American household has over $9,000 in accumulated debt! Remember, this is an average. So what is the answer? Well, there is no simple solution for this. Debt Consoladation , however, may be of help. Bankruptcy should be the last and final solution and is quite the long-term decision and commitment. Not paying at all solves no problems and only leads to worse ones. Not paying leads to more accumulated debt, more collector calls, more sleepless nights and so forth.
A Credit Card Debt Consoladation Loan can help you by taking all your existing credit card debt and combine it into one payment. This makes it easy for those to simplify there payments and reduce financial stress. Next, a Credit Card Debt Consoladator will work to lower your interest and payments by “wheeling and dealing” with those you owe your debts to. Something is always better than nothing, and credit card companies know this.
Seeking advice from a Consumer Credit Counseling Service may help as well. They will help you understand your debt and figure the best way to consolidate your debts fast and effectively. A Consumer Credit Counseling Service can help lift your financial burden and teach you more about Credit Card Debt Consoladation loans.
You don’t have to be trapped by debt. You don’t have to have sleepless nights. You can answer your phone without fear. It is all part of the American dream. Your first priority is to get out of debt safely and efficiently. Debt Consoladation can help you with this. Remember to seek advice from a consumer credit counselor too! Your life will start to change when you make responsible financial decisions and take executive action of your life. Remember, it is YOUR life your dealing with. Don’t you deserve the best. Once you are out of debt you can stay financially free- If you get out of debt, you have valid proof of your financial responsibility, and that’s something to be proud of!

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