For some people, just the mere thought of only having to make one payment every month and simplifying their debts is well-worth the time and effort in getting a consolidation loan. As the number of debts adds up, it can get more and more difficult to keep track of your monthly payments. Unfortunately, there are some scams associated with this industry. You need to be careful when looking into credit consolidation services.
There are a lot of choices, as this is a very crowded market. However, don’t allow yourself to feel overwhelmed. As long as you follow these tips, you shouldn’t have to worry about falling prey to predatory lenders:
1. First, check with the BBB to check the score of a particular company. Even if it is unaccredited, it could still be a reliable company if there are enough positive reviews and it has an A score. Read some of the reviews and complaints. Have the complaints been addressed and taken care of? Are the customers happy overall?
2. Will you truly save money if you go with a particular company? Debt consolidation can help you save a lot of money, time, and hassle as long as you end up working with a reliable service. Just make sure the interest rate will really be low enough to truly benefit you. Also, will you be required to put up collateral for a secured consolidation loan? Will it be worth it to do so?
3. Check the ratings and reviews on sites like Customer Lobby and Shopper Approved. These are reliable resources for finding out if a particular company is trustworthy or not. It’s also helpful if the company that offers credit consolidation services is IAPDA-certified (International Ass. of Professional Debt Arbitrators).
More Tips When Searching for Credit Consolidation Services
4. It’s always a good idea to obtain credit consolidation services from an organization that has access to a network of lawyers in order to help any settlements and legal issues that may arise. You should be able to read actual real settlement letters that the company has used to help prior clients.
5. Longevity is important. How long has a particular company been providing consolidation services? It’s best to avoid newer companies. Instead, consider those that have been around for decades, and have experience with helping individuals with debt problems similar to your own.
6. Keep an eye out on interest rates, loan terms, and any other fees and costs. Don’t be taken off guard by being charged unexpected fees after taking out a consolidation loan. If you have to get a secured loan, will be interest rate be low enough that you should be able to meet the repayment requirements?
Where should you get your credit consolidation services? CuraDebt is one company that is consistently listed in “top credit consolidation companies” lists. It’s a member of the US Chamber of Commerce and offers a free savings estimate.