Debt consolidation is something people turn to when your bills begin to pile up and you don’t know what to pay first. Does this situation sound like your situation? Do you know someone who is in similarly dire straits?
Many creditors are willing to work with consumers to resolve their debts.
Look into exactly how your debt consolidation interest rate is determined. An interest rate that’s fixed will help you budget your money and make your payments on time.You know exactly what the cost of the loan will be. Be wary of any sliding interest rates. You may even end up paying higher interest rates than you were before.
When you’re going through the debt consolidation process, consider how you first put yourself in this position. You don’t want to find yourself in a similar position down the road. Be honest with yourself about how this situation in order for you to never experience it again.
Many creditors will accept as little as 70 percent of the balance in one lump sum. This will also have no impact on your credit score.
Find out if your chosen debt consolidators you’re using are certified counselors. Check the NFCC for a good reputation. This will ensure that you feel more comfortable as you’ll be dealing with a knowledgeable company that has employees who have the proper training and certification.
Find out if your debt consolidation company that offers individualized payment programs. Many companies try a one size fits all strategy; however, but you should avoid this since each debtor has a different budget. You should look for a company that will provide you with specific and individualized plans. Although these may appear more expensive in the beginning, they can save a lot of money for you after a while.