Free Debt Consolidation

The concept of consolidation is pretty simple: Put all your loans together and pay it up as a single loan. There are many companies and groups out there only too eager for you to buy into this idea. But how sure are you that the credit counseling services they offer are right for you? Whether you opt to go for a commercial firm or a non for profit debt consolidation service, always first check if it is certified by the Better Business Bureau. Don’t just take the company’s claim.

Just like shopping for the best produce, there are a few key things that will help you tell the good from the rotten:

1. They won’t force you to sign up for anything. Many credit counseling services will offer free financial analysis. A good firm will never force you to sign up even after giving this free service –or any other freebie they may offer at the start.

   Laying out your financial status or your assets versus your debts is always the first step in proper money management. This is equal to knowing where you are to help you decide where you should go. You should be able to do this on your own. There are many online resources to help you.

   Consolidation companies will do this for free to make you feel special. This further lets them see the risks they will be entering into if ever you sign up with them.

2. They do not make big promises. The ads will scream how this will solve all your problems. However, good credit counseling services will never promise you that things will get better in a matter of months. They will never promise to bring your interest rates to zero. They will give you the real picture and tell you that the road to financial freedom can be a tough, uphill climb for those getting out of debt.
3. They are transparent in their fees. Commercial or for profit credit counseling services will give you a straightforward start-up fee. Non for profit debt consolidation groups will have some sort of fee described as charitable donations.

   Either way, the good counseling service will tell you how much it will cost you for them to consolidate your loan and negotiate with your creditors. They will answer your questions regarding these fees.

4. The fee they charge cost less than your debts. Some debt consolidation fees are so high that they match or cost more than your debt principal. Before signing up for the plan, do some number crunching on your own to see if you are not paying more than what you expect.

   The good credit consolidation company will make sure you are able to pay their fees. They will also see to it that it is just a fraction of the loans you owe.

5. They help you see the big picture. The job for the good credit counselor is to make sure you do not get yourself into major debt again. Non for profit debt consolidation in particular focus on helping you gain better control of your money. The good company will inspire and motivate you not to get richer but to be more financially stable no matter how much you earn.

For more information about credit counseling services please visit: non for profit debt consolidation