Debt Consolidation Tips

1. Determine what type of service you need 

Debt management programs are only offered by non-profit credit counseling companies - commercial businesses cannot provide these types of programs because they would have no way of making money on the arrangement once fees were taken into account. Debt consolidation loans are offered by both commercial lenders and non-profit credit counseling agencies.

2. Decide what approach to debt relief best fits your needs

Debt management, consolidation loans (also called balance transfers or debt consolidation loans), and home equity loans are three of the most popular options available to consumers dealing with overwhelming levels of personal debt. Once you have determined which type of service is right for your unique situation, you can move on to finding the company that's right for you.

3. Figure out how much money you need 

Allowing yourself enough time to research all of the potential companies is very important because it will enable you to find one that offers services within your price range without putting too many restrictions on the types of bills that it will help pay off. Credit counseling agencies are more likely to be less harsh in what bills they will help you with, for example.

4. Look beyond the interest rates

While it is certainly important to find a debt consolidation company that offers reasonable interest rates, it's also necessary to look at other factors such as membership fees and any types of hidden costs that may come up during repayment.

5. Make sure there is no fee for joining 

Many credit counseling and debt consolidation companies charge consumers an initiation or membership fee just to start working with them - this fee can range from $20-$50 and can take a big chunk out of your monthly payment before you even begin your journey towards living debt-free.

6. Be wary of companies requiring upfront fees

Any company that requires clients to pay them before they have had a chance to offer any service is not one you want to work with. You should never have to pay money upfront in order for a company to start helping you - if this is the case, then it's best to leave and look elsewhere.

7. Make sure there are no hidden costs 

While most credit counseling companies do require monthly fees (which typically cannot be avoided), make sure these fees are clearly outlined before committing yourself - some companies will try charging you extra fees at the beginning or end of your program. If you find yourself being charged more than once during your debt relief journey, then move on.

8. Ask lots of questions

The more information you can get about a company before signing any contracts, the better. Make sure to ask as many questions as possible so that you understand exactly what is expected of you and what types of results you can expect from your efforts.

9. Use positive reviews as a guide

While it's always important to make completely certain there are no negative reviews or red flags associated with any company, using current customer testimonials is also an excellent way to learn more about different organizations and how they handle things.

Conclusion

If you follow these helpful tips, then finding debt consolidation services online will become much less intimidating. Do not be afraid to try one or two companies that seem like they may offer exactly what you are looking for - the worst-case scenario is that they don't work out and you have to keep looking.