How to Choose a Debt Consolidation Company

Dealing with debt can be stressful, and sometimes the debt seems so overwhelming that it feels like there is simply no way out. The good news is there are ways you can consolidate your debt into a more affordable monthly payment, which can also help you raise your credit score.

Instructions

1

Ask for recommendations. One of the best ways to find a reputable, proven debt consolidation company is to ask family and friends if they can recommend one, preferably a debt consolidation company theyve used and with which they had a positive experience.

2

Contact the National Foundation for Credit Counseling, a nonprofit organization. In addition to providing valuable information about debt consolidation, the National Foundation for Credit Counseling also has a listing of debt consolidation counselors nationwide.

3

Make sure that the debt consolidation company you are considering is a nonprofit. Steer clear of for-profit debt consolidation companies unless you do a thorough investigation first to determine whether they are legitimate, not a scam.

4

Check the debt consolidation companys track record with the Better Business Bureau to determine its reputation and if there have been complaints filed against the company.

5

Contact the attorney general in your state, who can tell you if the debt consolidation company you are considering working with has complaints against it, how many complaints the Better Business Bureau has received and whether or not the company is actually licensed to operate in your state.

6

Ask plenty of questions of a representative of the debt consolidation company before you sign up for anything. Consider it a formal interview that allows you to assess if you feel comfortable working with the company.

7

Make sure that the debt consolidation company representative requests and reviews all of your finances thoroughly before offering a solution. If you are offered a solution before your finances are even looked at, find another debt consolidation company.

8

Decide, in conjunction with your debt consolidation counselor, the best way to consolidate your debt. Your options may include taking out a personal loan, refinancing your mortgage or taking out a home equity loan.