Using debt consolidation can be an effective way to grab the reins of your financial life and get your debt situation back under control. Many consumers in this situation choose to use a debt consolidation company to help with the process instead of going it alone. If you find yourself in the market for a consolidation company, there are a few things that you’ll want to pay attention to.
Fee Schedule
When working with a consolidation company you have to find out how they charge for their services. Some companies charge a flat fee for helping you with the consolidation process while others charge a fee that is based on a percentage of your debt. Neither option is necessarily better than the other, but you need to make sure that you are dealing with a legitimate company before ending over any of your hard-earned money. Some companies have been known to ask for large upfront fees and then not do what they claimed they would do.
Check the Company’s Record
Before selecting a company to work with, make sure that you check out its long-term record. Most legitimate companies are listed on the Better Business Bureau website. As a consumer, you have the ability to get on the Better Business Bureau website and do a search for free. You can look up a company and see if it has any complaints registered against it. If you look up a company and it has a large number of complaints that have not been rectified, you should be a little bit leery of working with the company.
In addition to checking with the Better Business Bureau, you should also check out some other review sites to see what customers have to say. There are number of consumer review websites that you can look at in order to get a good idea of what companies have to offer. Just make sure that you are reading legitimate reviews instead of thinly disguised affiliates trying to get you to sign up for a service. If the review has a link to sign up for the program, you should be skeptical about doing so.
Making the Decision
Any decision in this area should be made after careful consideration and research. Once you find a company that has a fair fee structure and a good reputation, make the decision and start working towards eliminating your debt over time.