Debt is commonplace in the world today. But it's a necessary evil. It's almost too easy to accrue debt by using credit cards or making car payments. Before you know it, you can owe money to several different businesses or firms and can barely remember when to pay each bill. As our country continues through a tough economic climate, it's important to get a handle on your finances and avoid an overwhelming debt load.
There are two functions of a debt consolidation service. One route to take is through debt management, wherein you receive debt-relief advice and eventually sign on with one creditor, instead of the dozen you may owe money to. You are still signed on to pay 100 percent of the principal you owe, but the purpose is to cut confusion and simplify the process by owing only one creditor, while also possibly lowering the interest rate. Debt settlement is the other path. These companies will reach out to your creditors and negotiate to cut your debts in half to salvage their chances for repayment.
It's important that you find trustworthy companies that don't put you in a bigger financial mess than you may already be in. The best services for getting out of debt are National Debt Relief, DebtWave Credit Counseling and Premier Debt Help. Also, check out our articles on debt consolidation to help you find assistance for getting out of debt.
In order to rate highly, a service must have the right features and a website that is easy to comprehend. It must also be willing to educate you on your options. Below are the criteria TopTenREVIEWS used to evaluate debt consolidation services.
Debt management services generally charge a monthly fee of around $50 per month to service your account. You should know that debt management services do receive payment from the creditors with whom they arrange payments, but those arrangements are essentially not visible to you, the consumer. The cost of the service may vary based on the total amount of the debt, the number of creditors involved and your state of residence.
Debt settlement payments are unique to the given situation. Typically, you pay a percentage of the debt that the debt settlement company saves you to that company. At times, there may also be a monthly payment. As of 2010, upfront fees have been eliminated.
We looked to see whether certain firms offer different options, such as debt settlement and debt management, to help you with your debt issues. Several debt consolidation services allow you to enroll online, whereas others may only have enrollment by phone. Loans are backed by both secured and unsecured collateral. Getting a secured loan means that you put up a car or house, for example, as collateral for the loan. Unsecured loans are backed by your credit score and borrowing history.
The sad part about getting out of debt is that many people resume their old, unsuccessful financial habits after completing debt consolidation. Also, many people who start a program don't complete it. To avoid falling into the same old patterns, quality credit card consolidation services provide counseling and other tools to help you change your bad habits and avoid falling back into debt. Many of these sites have free articles and blogs to give you as much educational information as possible to help you take the right steps towards choosing the right consolidation service and eventually becoming debt free.
Help and Support
A quality debt consolidation service must excel in customer service. The representatives need to be knowledgeable and empathetic. Many questions will arise during the course of the debt consolidation program, and the company must always be willing to provide accurate information.
You shouldn't enter into debt management or debt settlement lightly. But if you are at the end of your rope debt-wise, this is an avenue that may help alleviate the constant stress that comes with high credit card interest rates and a steady influx of bills. Do your homework and use our reviews to help you find the debt consolidation firm that best meets your needs and will help you get out of debt as fast as possible.
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