Debt Consolidation Information

Many individuals and families that are swamped with credit card debt, car payments and other consumer debt are looking for debt consolidation information so they can make intelligent decisions about the best way to consolidate debt. Debt consolidators and debt management companies, many found online, often look like a great way to go when consolidating debt. And most of the time this is a good idea because a reputable debt consolidation company can help to lower interest rates and payments. However, when considering which company to sign up with, one should be aware there ARE some shady operators and you should dig much deeper than just listening to or reading online debt consolidation sales offering messages.

Here are three things especially to watch out for.

Shamefully Outrageous Charges and Fees
If you are offered an account review or credit analysis make sure it's for free. Some unscrupulous firms will want to charge you $100 or more just for this service. You should be able to get a credit counselor to take a look at your situation and determine if you are a candidate for debt consolidation through their program or even another program if you don't fit their criteria. Also, beware of credit educational plans. These can cost upwards of $1,000 and might include only forms, letters, and other information that you can find yourself for free online. So, if right away a company starts pressuring you into upfront fees without providing service or materials, be very wary.

Promises Too Incredible to Believe
When a representative of a debt consolidation firm tells you that you will be paying half of your current monthly payments in less than two weeks or that your interest rate will be reduced to 0 percent, your scam radar should kick into gear. Claims such as these need to be substantiated with irrefutable evidence that they have accomplished these things for others in a financial situation similar to the one you are currently in. There are no miracle workers in the debt consolidation business. The financial benefits of consolidation take a month or longer - two weeks is unrealistic.

Did They Call You? Or, Did You Call Them?
In your search for debt consolidation information how did you find the company you are talking to? Believe it or not, one of the most important indicators of how reputable a firm might be is how you discovered them. If you found them in your spam email folder or if they cold called you at home they should start out with at least two strikes against them. Unfortunately there are companies out there that are trolling for fees and just want your money. Once you give them money you probably can't afford you will get very little of what you need in consolidating debts. Firms with a high degree of integrity, having stellar reputations will wait for you to make the first contact or request information from them.

Do Your Due Diligence
Of course the best way to check out a debt consolidation service is to query the better business bureau. Are they a member? What is their rating? Do they have any unresolved and even resolved claims? If so, how many? These are important questions to get answers for. Don't stop there. Look for testimonials and unbiased reviews on blogs and forums. Check with your state attorney general office or the FTC to see if there are any enforcement actions against them. In your quest for debt consolidation information -leave no stone unturned!