When you find yourself considering a debt consolidation company, be advised that not all services are alike. Some are legitimately trying to assist you in credit restoration and bill consolidation for a better future. Others prey off those the service was intended to help. To determine the differentiating factors, you must carefully dissect their advertisements.
Non-profit Versus For-profit - Do not be fooled by a company claiming that it is non-profit, therefore it is legit. The only thing separating non-profit and for-profit statuses is their tax forms. This is not to say that all non-profit companies are fraudulent, many of them contact your creditors and pay them a lump sum in order to significantly lower the fees passed onto you. These legitimate companies will work with people with poor credit ratings and help[ to substantially lower their debt.
For-profit companies that are true to their advertisements lean toward customers who still maintain a good/fair credit rating, but find themselves consumed by their current financial status. Both non-profit and for-profit companies that are legitimate facilitate a reduction in interest rates, ease of monthly payments, and provide similar service rates to the consumer.
The best way to figure out if a company is on the up and up or not is to ask for a monthly payment quote. Once you've given them the necessary information on your account balances, interest rates, and creditors, any good company can give you a fairly precise quote. Once you have the quote, compare it to quotes from other companies.
One of the best ways to establish if a debt consolidation company is credible is to request a monthly payment quote. For instance, you can provide them with information on your creditor?s name, account balances and interest rates. Once you get their quote, you can compare it with payment quotes from other companies. All the quotes should have very little difference since your creditor will give a similar interest rate to all the companies. If any company should have a very low quote, take it as a sign of fraudulent activity.
Services Provided - Every debt consolation company has additional services that they should provide to you such as closing out old accounts, deleting or lowering late fees, and lowering percentage rates on the balance. If a company does not offer information on these services, you should be bleary about their motives.
You should also avoid companies that offer bankruptcy and debt settlement as an option. A good company doing its job right should not offer these credit-damaging services. You should also research on the best company there is to avoid disappointments later on. - 31377
Non-profit Versus For-profit - Do not be fooled by a company claiming that it is non-profit, therefore it is legit. The only thing separating non-profit and for-profit statuses is their tax forms. This is not to say that all non-profit companies are fraudulent, many of them contact your creditors and pay them a lump sum in order to significantly lower the fees passed onto you. These legitimate companies will work with people with poor credit ratings and help[ to substantially lower their debt.
For-profit companies that are true to their advertisements lean toward customers who still maintain a good/fair credit rating, but find themselves consumed by their current financial status. Both non-profit and for-profit companies that are legitimate facilitate a reduction in interest rates, ease of monthly payments, and provide similar service rates to the consumer.
The best way to figure out if a company is on the up and up or not is to ask for a monthly payment quote. Once you've given them the necessary information on your account balances, interest rates, and creditors, any good company can give you a fairly precise quote. Once you have the quote, compare it to quotes from other companies.
One of the best ways to establish if a debt consolidation company is credible is to request a monthly payment quote. For instance, you can provide them with information on your creditor?s name, account balances and interest rates. Once you get their quote, you can compare it with payment quotes from other companies. All the quotes should have very little difference since your creditor will give a similar interest rate to all the companies. If any company should have a very low quote, take it as a sign of fraudulent activity.
Services Provided - Every debt consolation company has additional services that they should provide to you such as closing out old accounts, deleting or lowering late fees, and lowering percentage rates on the balance. If a company does not offer information on these services, you should be bleary about their motives.
You should also avoid companies that offer bankruptcy and debt settlement as an option. A good company doing its job right should not offer these credit-damaging services. You should also research on the best company there is to avoid disappointments later on. - 31377
About the Author:
Susan Reynolds is the webmaster for a leading South African Debt Consolidation Portal. For more information visit: http://www.debtconsolidation123.co.za/
