Debt Consolidation Online – 3 Things to Watch Out For

Looking for a debt consolidation service? There are hundreds of companies out there who can help you consolidate your debt into one low-interest monthly payment. However, you need to beware of scammers! Some unsavory folks will simply try to take your money by making promises of debt consolidation–and then they don’t deliver on those promises. So as you’re browsing for Debt Consolidation online, remember to watch out for these three things:

Outrageous promises

“We’ll wipe your credit clean in less than 3 days!” “We’ll get your interest rate dropped to zero percent!” These types of outrageous promises are a sure sign of a scam operation. Any legitimate debt consolidation company will make reasonable promises and claims about the services they offer. Look for companies that offer help, assistance, and guidance–NOT miracles.

Spam, telemarketing and junk mail

Be wary of any service that solicits your business, especially with cheap marketing tools like email spam, telemarketing and junk mail. (Fliers on a community bulletin board are even worse.) In general, it should be you who seeks out their business, rather than they who contact you. Television commercials are an exception, however. They are generally acceptable advertising since the company is not contacting individuals directly, but is rather targeting a broad audience.

Exorbitant fees

Don’t pay any company an up-front fee before they’ve even looked at your case! Sometimes called “client assessment fees,” some companies will charge you $50 or $100 just to review your paperwork for a few minutes–then they shuffle you out the door! Although it’s not unusual to pay a debt consolidation service an initial fee plus a monthly fee, you shouldn’t be paying exorbitant amounts. Shop around so you know the current rates for this type of service, and walk away from any company that seems to be gouging you.

Although a debt consolidation service can get your interest rates lowered and help you get a handle on your finances, it’s always smart to be wary and on the lookout for unscrupulous scammers. Before you sign on with any company, make sure you check them out with your local Better Business Bureau.

The Best Place to Get Help With Debt Consolidation Online

Debt consolidation involves getting a loan that will combine most of your unsecured indebtedness into one payment. This loan should have a lower interest rate than what you are paying on your debts, if its not you are not really benefiting by consolidating your financial obligations. This kind of loans can help to lower your monthly payments as well as help you pay down your money owing quicker since you are not paying as much interest.

One of the best places to check with first would be the bank where you do your banking. If you have equity in your home, then you might be able to use it to consolidate. They have your information and know you, so you might be able to get a better rate and have an easier time getting a loan from them. However, you may want to get an interest rate quote from your bank and then go on-line to see if you can beat the rate that they quoted to you.

There are many services that are available today online, the question is, which one should I use? An individual should be careful in choosing a service for consolidating debts, you want a legit company that is going to be a real help to you in helping you deal with your financial problems.

If you decide to use a company that you found on-line. You should make sure that you thoroughly check out the different companies that offer this kind of services. Things you should check out when comparing different debt consolidation services are for example:

Which ones are offering the best rates?

Which one has the fewest complaints?

What are their certifications?

Getting into debt is not hard to do, getting out is not so easy. Nevertheless, debt consolidation can be a step in the right direction if you do your due online diligence.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Free Debt Consolidation Online: 4 Frequently Asked Questions And The Answers To Them

Credit cards, loans, mortgages, utility bills; all of these can be paid through free debt consolidation online. If you cannot handle anymore the pressure and the pain in paying all your debts and financial obligations, then you need a concrete solution that will put you away in this chaotic situation. Just imagine finding a non-profit organization that will help you in settling all your debts within a few years time. Yes, they exist and they are there to lend you a hand.

Read some of these frequently asked questions gathered online and find out from the answers of most professionals and experts of the financial world if they can help you on your debts consolidation plans.

What are the advantages of free debt consolidation online?

One of the major advantages of doing things online is the convenience that it could give you. You do not have to check one account after the other just to check your current payment balance and the due date for it. If the debts are consolidated, you will only look into a single portfolio under one account. And since it is online, you can view it anytime and anywhere you want. Another advantage is that you are no longer required to call anyone and report to them any discrepancies that you find on your financial statement. Oftentimes, all you need to do is to compose a message and send it instantly online.

What are the disadvantages of online debt consolidation?

When it comes to disadvantages, it is that during the application process that you are likely to experience some hassles and delays. Since you will need to submit to your preferred online institution the needed scanned files, several valid personal identifications, and the statement of accounts of the debts needed to be consolidated; it is obviously a scratch on your head at the beginning. Another disadvantage is the threat of the scams scattered online nowadays. You should be cautious enough with the persons you are dealing with online. Conduct personal investigations and free your self from worries and doubts about their reputations.

Is there really a free debt consolidation?

The answer is absolutely yes. Debt consolidation is actually a growing industry as most people are looking for lower interest rates and lower monthly fees over their loans and credits. What actually makes it free is the free counseling about debts and loans before you engage with the services or packages that these companies are offering. Besides, doing transaction online is just freeing you from the expenses of travelling and fees of processing your papers which you are literally experiencing on banks and financial agencies. Certainly, there are benefits in doing the debt consolidation and they are guaranteed free.

Who are the companies offering free debt consolidations?

They are many and they are just online. The best thing to do when searching for the right company that will help you on your debts is to seriously read their backgrounds. There is nothing wrong about sending them an online inquiry asking about their promos and discounts on their offered services. You can as well verify if there really exist non-profit organizations doing free debt consolidation online. Know your rights and privileges as these are all vital in settling you debts and other financial responsibilities.