When you're in debt, finding the right debt resolution company entails examining the different options available. Some companies will offer debt consolidation, as well as credit counseling. Some companies also offer the option of debt negotiation. Before engaging with any company, always check out the history of the company and investigate them through the Better Business Bureau.
Options
Several options are available when you're considered finding the right debt resolution company. There are a variety of ways to resolve your debt problems, including taking out a debt consolidation loan, credit counseling, engaging in debt negotiation, as well as attempting to reach a debt settlement. You can find the debt resolution company you want to work with by examining your options.
Debt Consolidation
Taking out a debt consolidation loan has the advantage of having a single monthly payment, rather than several smaller payments each month. There won't be different due dates, which can sometimes result in late charges, costing you more money. It has the advantage of allowing you to concentrate on paying off the one loan. In addition, you'll have a longer period of time to pay off the debt, which can result in having a smaller monthly payment than if you were to pay each bill individually each month.
Credit Counselors
Part of helping you resolve debt issues is helping you manage your money. This is where a credit counselor can be useful. A reputable credit counseling company can give you advice on handling your money, as well as showing you how to develop a budget and keep within it. Some companies will also give you material to instruct you in helping stay out of debt. Before using any credit counseling company, ask for references and contact your local Better Business Bureau to determine the background of the company.
Debt Negotiation
A debt negotiation company claims to contact credit card companies and get your payment reduced. Some of these companies are not legitimate, unfortunately. Never pay upfront costs for a debt negotiation company and make sure that everything told to you is provided in writing. You should also know that you could contact any credit card company yourself and attempt to get your debt reduced, without having to go through a debt negotiation company.
Credit Scores
If you want to make sure your credit scores do not suffer, debt consolidation will not lower your scores, since you will pay off all of your debts. Finding a good credit counselor who can help work out a debt consolidation plan is one option available.
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