The facts are crystal clear: a lot of Americans are struggling financially. The recession has affected millions of consumers. Many consumers find themselves either underemployed or unemployed while facing a mountain of debt. With high prices for essentials, is it any wonder that many people are falling behind on their monthly obligations? And not all of those struggling debtors are homeowners. So, what's a conscientious, non-homeowner supposed to do when he's drowning in debt?
Unscrupulous Debt Consolidation Companies
To fill the void since the economic meltdown, an old industry with a new twist is emerging: debt consolidation companies. Unfortunately, many of these companies make money from unsuspecting consumers who simply need guidance from knowledgeable, honest companies to assist them with their financial burdens. The good news: credible, honest debt consolidation companies can help non-homeowners consolidate their backbreaking financial obligations.
What to Know Before Considering Debt Consolidation
First, consumers must determine if they need to consolidate their debts. If you consistently are 30 days or more late on your obligations, debt consolidation help is recommended. Another rule of thumb: if you owe more than you earn, you're probably in economic hot water.
Next, consult the Yellow Pages or the internet for the names of debt consolidation companies. Check with your local Better Business Bureau for complaints against these companies. It's also a good idea to contact your State Attorney General's Office and ask what types of licenses, certifications and/or accreditations your state requires for debt consolidation companies. Investigate those companies to ensure they are reputable.
Hire a company with a sterling reputation to assist you with a very difficult problem. Bankruptcy is not an option and should only be considered once all other options have been eliminated. Your credit rating and self-esteem will be restored once a viable economic plan is put into action.
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