The debt management or debt relief industry provides solutions for combining multiple debts into a single monthly payment. This sort of debt management technique could prove to be fruitful for consumers who have several outstanding debts, especially debts with higher interest rates. The advantage of consolidation of debts is actually to assist consumers in developing a workable budget, paying off debt and saving substantial money. Debt counselors are there to provide you a broad spectrum of services online, in local offices or over the telephone. You must realize that there are numerous debt consolidation companies all over the country. It is vital to identify a good and trustworthy company. You need to look for certain attributes that would help you differentiate a top company from the rest.
Affiliated to Any Accredited Organization
A top bracketed debt management company would be striving to achieve the standards necessary for qualifying for professional affiliations. Some of the authorized and accredited organizations would include United States Organization for Bankruptcy Alternatives, Association of Settlement Companies and International Association of Debt Arbitrators. Any trustworthy debt relief organization is bound to be affiliated with some or at least any of these organizations. Affiliations to accredited and professional organizations are the real test of authenticity. You must choose only registered companies.
Cost-Effective
A good debt management company would be providing top quality services but at affordable rates. There are some scam companies who would be demanding astronomical charges sensing your vulnerability and hoping to exploit the situation. You should understand that a trustworthy debt management company would not be charging any consultation fee upfront. Most reputed companies would not be charging consultation fees. Stay away from scam companies charging very high maintenance fees.
Boasts of Positive Reviews
A reputable debt consolidation company would be having numerous positive feedback or reviews from their customers. A trustworthy company would be getting a top rating on BBB website. If proper evaluation reveals that a company has several complaints, you should become alerted and avoid contacting such an unprofessional debt management company. On BBB website you could easily come across the various complaints and relevant information regarding client complaints if any.
Old with an Impressive Track Record
A debt relief company that has been in this trade for several years should be regarded as authentic. Always remember that old is always gold and they are trustworthy and reliable. A relatively new entrant into the industry circuit should be treated with much caution as it would obviously, not be in a position to demonstrate its track record.
Often Offers Free Consultation/ Financial Advice
Thousands of Americans are overwhelmed with debts and they are in deep trouble. The debt issues are unique to an individual. Hence, a legitimate debt management company would be devoting enough time to understand unique problems of its individual clients and offer financial and debt relief advice accordingly.
Provides Opportunities for Free Workshops
Established debt management companies usually offer free workshops that aim to educate the common man about the importance of saving, budgeting and also spending money carefully and with wisdom. Free workshops are organized for promoting the services of the concerned company.
Red Flags to Watch Out for
- You should be alert when you come across a consolidation company that talks about lowering your entire amount owed or working deals out effectively with money lenders. This seems to be alarming as consolidation does not at all involve lower balance negotiations. It is simply about consolidating numerous debts into one single new loan.
- If company personnel are aggressive and compelling you to make a decision in a jiffy, be wary of their intentions.
- Stay away from companies that promise a quick fix. This is surely a scam because there are no quick fix solutions for eliminating debts.
Conclusion
Once you sign a consolidation agreement, then you have to abide by the clauses in the agreement. So you simply cannot take this decision lightly. It is high time you identified a good company that would be teaching you to manage all your financial stress and issues calmly and help you to identify the root cause of this financial crisis. There is no point in getting your debts consolidated if in the near future you would be again ending up neck-deep in debts. Alter your spending habits for better wealth management in future.