Finding Reputable Debt Consolidation Loan Services

If you find yourself in debt through credit cards or various loans, debt consolidation loans can help. Many Americans hold large amounts of credit card balances and other high interest debt. As a result debt consolidation is becoming more and more common.

A Reputable Debt Consolidation Firm can Help you

  •  Reduce your monthly payments
  •  Consolidate multiple debts into one payment
  •  Lower your interest rates
  •  Reduce or get waived your late fees

While your options for debt consolidation are many, not all agencies are reputable or honest. There is an epidemic of fraudulent companies looking to get rich off of individuals with bad credit, by charging up front fees then doing nothing to correct their credit. So how do you avoid the debt consolidation fraud epidemic and hire a reputable agency?

How to Find a Debt Reduction Agency

There are several factors you should consider when looking for a reputable debt consolidation company.

  1. Research a debt consolidation agency by contacting the Attorney Generals office or the better business bureau to verify that the agency you are considering hiring is reputable. These offices can also suggest a list of reputable agencies.

  2. Know whether debt consolidation agencies need a license to operate in your state and if so verify that the agency you are considering has all the proper credentials.

  3. Examine the terms of the consolidation carefully. Make sure you look carefully for hidden costs.

  4. Hire someone who can provide you with a plan that fits your particular needs. Do not accept a "cookie cutter" consolidation program if it does not actually meet your financial capabilities.

  5. Find an agency that can examine your credit and offer advice on how to avoid falling in to the debt trap again.

  6. While you may be required to pay an upfront fee to reduce your debt, do not hire an agency that says they will negotiate loan modifications for you for an upfront fee. These agencies are quit often fraudulent.
When considering a debt consolidation it may be in your best interest to choose a lower interest rate with a higher upfront amount due. If you secure your debt consolidation plan with collateral like your home, you can bargain for a lower interest rate. Your debt consolidation company can ask for collateral if you have a bad credit history. The reason for the collateral is that, like you the debt consolidation company want to be assured that they are working with someone they can trust. 

If you follow these basics points you should be able to secure a reputable credit consolidation agency that can help you reduce your current debt and get a "hold on" your financial situation so you do not end up back in the same situation.

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