How do i find a reputable Debt consolidation company?
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Answer:
There are many larger companies now that are endorsed by regulation agencies and the one that I worked for even had a contract with the Defense Department in order to refer financially struggling soldiers for counseling. In fact a year or so back, when you heard all that news about the changing rules of Bankruptcy filings, one of the big changes was that individuals were to try to appease their debts through debt consolidation counseling before they were allowed to file. I admit that I am currently on the program, and it has helped me tremendously. Here's the basics on how they work:
1) You have lots of high interest debt. Perhaps you fell behind on some credit cards or private loans, and the late fees and high interest rates are making it very difficult for you to make any progress. With my case, I was always on time, but I wanted to make a change in my life and rid myself of my high interest debt.
2) you call a credit couneling company. I can't speak for all companies, but at the one I worked for we were trained to counsel the clients. To show care and compassion because they were in some difficult situations. This is sometimes all someone needs. Someone to just listen to, but if the counselor finds that a debt consolidation WILL help, then they will walk you step by step through the program.
3) Okay so you qualify now what? You enroll your high interest debt into the program and the company will begin contacting your creditors to negotiate lower interest rates on most of your accounts. This is a tremendous help because interest consumes most of your monthly payment anyways. Another important thing that you have to remember is that the creditors also CLOSE your accounts. This is to further help you along in paying off your debts.
4) You stay in contact with your consolidation company and creditors. But you only make ONE payment to the consolidation company, who in turn forward it to your creditors.
5) Sit back and watch your debt slowly disappear!
So if you are interested in the company I worked for, it is http://www.incharge.org . If you are interested in the company I have an account with, it is http://www.careonecredit.org/ . Both of these companies are registered with the BBB and have outstanding reputations. The good part is they are also non-profit. They do ask for a monthly donation with your payment, which goes to paying for the counselor's salaries, but you can always decline it if you are really in a bind. I pay it greatfully because they have helped me so much. Anyways, good luck with your research!
creditsolutions.com this company was featured on MSNBC on a special about debt relief. They work with your credit card companies and reduce your debt, lower your interest rates and reduce your monthly payments. They succeeded in reducing my debt from nearly 30,000 to 16,000 and my monthly payments from over 1,000/month to only 322/month.
Credit unions if your a member and Consumer Credit Counseling
Check any company out with the Better Business Bureau first to make sure there compliant
Don't do it. Why would you enlist a third party to submit payments on your behalf?
Call your creditors, each and every one and tell them your situation and what you can offer them. Ask for a temporary rate reduction, and send something every single month.
These agencies are notorious for further ruining credit and not making any payments on behalf of the creditor.
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