PostHeaderIcon How To Review A Debt Consolidation Company


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If you are still worried about your credit score and debt issues it is high time you started evaluating various debt consolidation companies. You must keep in mind certain points while reviewing a trustworthy debt consolidation company. Your security must be your priority as you do not want to lose money in fraud. How to perform a Debt Consolidation Company Review?

Verify the services offered: As you intend to deal with a company, who will consolidate your finance, you must consider revisiting the services offered section. A debt consolidation company consolidates all your debts to make it more manageable. They also provide credit counseling and lender negotiation. Check whether this company is providing such services. Understand the pros and cons along with each clause before signing a contract with them. Ensure written contracts and not verbal communication.

Review the fee structure: Clarify the components of the fee structure. You must know what you are liable to pay. You may opt for a flat fee structure or show your preference for fee as a percentage of your savings. For example, the latter is in the best interest of both the client and the debt consolidation company. However, you may end up paying more that the stipulated amount due to hidden costs like the following:

Monthly service charges range between $40 and $50 Set up or up front retainer fees that range between $300 and $350 Fees for interest rate negotiation Fees for bankruptcy Chapter 7 Fees for bankruptcy Chapter 13 15% to 30% of savings on your settlement so on and so forth

Again, some companies make you pay fees after each settlement instead of paying after all the accounts are settled. Result is that you end up paying more. The monthly services charges for various debt consolidation companies differ. It ranges anywhere between $25 and $50.

Debt Consolidation Company Accreditations: The best of them are accredited with the following: NFCC i.e. National Foundation of Credit Counseling or AICCCA i.e. Association of independent Consumer Credit Counseling Agencies Whether it maintains Escrow account: Debt Consolidation companies usually set up your Escrow account, which is used to accumulate your savings and then pay off the debt. Check whether the company maintains such account. However, it is advisable to maintain the account yourself or keep a tab to avoid unnecessary balance transfer into the account of your consolidation company. Better Business Bureau (BBB) Certification: A background check for the reputation of the company is required. The best of debt consolidation companies are certified by the BBB. Ensure such certifications while checking with the Attorney Generals office as well. The Ripoff Report and debt and credit related forums give you a fair idea about the company. A clean chit from all the above makes the debt consolidation company a commendable business association. Go for it. Thorough background check: A good company is ought to have satisfied clientele. Cross check with them. The best of the lot will have qualified employees with authentic degrees in accounts, management, finance, so on and so forth.


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This article is written by Marcia Gray,a debt consolidation community member of Oak View Law Group. Jason Holmes has been writing on debt settlement, debt consolidation, credit card debt, debt consolidation loans and various other financial aspects.

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