When you consolidate unsecured debt you open the door to lower payments, lower stress, and confidence in your financial future. Unfortunately, you also enter a jungle where many companies claim they can consolidate debt, but only a much smaller percentage of them have your best interests in mind.
The most important choice you will make after deciding to consolidate unsecured debt is which company to trust with your financial situation. The best indicators of what kind of company you are reviewing is their fee structure, and their track record. This will help you decide if you should consolidate unsecured debt with their assistance.
Fee structures when you consolidate unsecured debt
Not all companies that consolidate unsecured debt hold to the same fee structure. Honest companies will offer you a quote with a clearly delineated start-up fee and a recurring service fee. The amount of these fees can vary widely, but they will be clearly labeled at the outset of your experience with them.
Make sure the communication channels are two-way when you partner up with those who consolidate unsecured debts and you will be the ultimate victor. Check out some of the related resource links at our site. Move on today. Great things can happen when you consolidate credit card debt.
On the other hand, you will find companies that try to disguise their fees. Some companies will call their start-up fee a “voluntary donation”, or even go as far as taking your entire first month’s payment as a “program completion award”.
Other companies will try to make their service fees look small by adding on additional monthly charges such as an “ACH fee” or a “using Western Union surcharge”. When you consolidate debt online with the wrong company you may even be assessed a monthly “online access charge”. Make sure that you get a breakdown of all fees charged by your debt consolidation company before signing any contracts with them.
Other methods when you consolidate unsecured debt
Another way to consolidate unsecured debt safely is by looking up the track record of the debt consolidation company you are thinking about taking service from. Your creditors will require your debt consolidation company to undergo ISO 9001:2001 quality control certification, and additionally require that the debt consolidation company’s credit counselors undergo their own training program and receive outside certification as well.
Quality standards when you consolidate unsecured debt
However, these quality standards can mean as much or, unfortunately, as little as the company wants them too. This is why a quick visit to the Better Business Bureau is important. You can look up the track record of any company’s history of customer complaints – including the details of those complaints.
You can see for yourself an example of the documentation the company keeps on its quality problems and what kind of actions that it has taken to correct those problems. Some debt consolidation companies will go out of their way to fix a consumer’s problems.
Other debt consolidation companies will leave the consumer wishing they had simply taken out a personal loan to consolidate debt instead. In the Better Business Bureau’s archives you can see for yourself what kind of company you are about to deal with.
What other types of consolidate debt loans are available to you? Get your debt under control when you review the weightiest culprits. Return to the source. Why not pay down your student loan debt the smart way? Do this when you consolidate student loan debt. How? By going for a federally-guaranteed deal and locking in a fixed, not variable, rate. Have your new lenders configure your new reduced, fixed rate by calculating the weighted average of your existing loans and rounding it up an eighth.
Are you struck in a credit card debt? Read our article on consolidating credit card debt.