Tag «Debt Consolidation»

How to Pick A Debt Consolidation Company?

debt-consolidationThis term may be new to many. It can be a substitute to Bankruptcy where we can contact a Debt Consolidation Company where multiple loans can be used at the same time. People who are struggling to overcome extreme financial issues can use it. Another name for Debt Consolidation Company is Credit Counseling and most of the firms will be clear on how they operate. You should be able to pick a standard company and work on a plan, which will work out, for both you and the company like doylesalewski.ca

It is every individual choice to decide whether to do an investment or pay a debt and this article might throw some light, http://www.forbes.com/sites/peterlazaroff/2016/07/29/invest-or-pay-down-debt/#1d57ec6f64c8

Identifying A Trustworthy Agency
1. You must get familiar with 2 types of debt consolidation companies. They are
• Debt Consolidation
• Debt Negotiation

Debt Consolidation
Managing debt is the choice opted by most of them. The firm informs your recipients and gets discounts for you. Like availing Late pay waiver. When you pay money to them they will segregate the money amongst the other creditors. The entire planning is done by the company.
The process of Debt Consolidation includes
*Having a session with a credit counselor.
*List down the expenses.
*Have a Budget Plan.
*Work on a Debt Management Plan

Debt Negotiation/ Debt Settlement/ Debt Arbitration
*As the name implies both the recipient and the giver compromise for an amount which will be paid on the whole.

2. Nonprofit Agency
When most of the companies try to loot some extra money from you, non-profit organizations are reliable and will not give false promises and leave you in dark. Though you know the company is a non-profit, it is always better to verify with Charity regulatory Authority before committing.
These agencies would be lending your money but will get your debt from the creditor for a lesser rate and in turn, you can pay the nonprofit agency in a single pay.

3. Check Accreditation
Looking for Accreditation in a related field is ideal so you will feel assured that you will not be cheated. Example: NFCC, FCAA which set standards on the top methods.

4. Rating From BBB
Any standard company will have a good rating from BBB. If you have a good rating from BBB then it means the customers will be treated in the right way meeting out the standards. You can also view the customer queries and answers from them.

5. Confirmation On License
Like many other industries, debt negotiators also need a license to practice. If there is a license issued in your state then check whether the agency you are committing with has a license. If they are licensed, then look for an alternate.

6. Approval From HUD
HUD-approved agencies are suitable for being a defaulter in home-related payments preventing foreclosure. You can get a list of agencies from HUD, the services offered and their contact details too.

7. Talk About Fees
The majority of the time, there will not be any charges for counseling and minimal charges will be applicable when using their debt management firms.