How to : Bill Consolidation Loan - Avoiding the Wrong Lender

Wondering how to get out of debt? If you have debt problems and are considering consolidation as an option, don't go from bad to worse. Having to pay out great sums of money to your consolidation lender only adds to the problem. For a successful debt consolidation, do your homework upfront. This article gives you the tools.

Instructions

1

Get some knowledge about credit and debt problems. It's important to understand the differences between secured and unsecured credit, how debt affects your credit rating and what types of loans there are vs. the true cost of each. Look to the links below for good places to start.

2

Beware of too-good-to-be-true offers. People who are shopping for debt consolidation solutions can be vulnerable to these types of pitches. Comparison shop and don't jump into the first offer you find.

3

Be sure to ask many questions before choosing a lender:
What is the interest rate?
What are all the fees?
Are there hidden fees?
What is your monthly payment?
When will the loan be paid off?
Remember that you are purchasing a service from this lender, and they will need to get a cut from your hard-earned money.

4

Don't get involved in an advance-fee loan scam. This is a debt and bill consolidation that requires you pay a fee before receiving a promise of a loan. To learn more about this type of scam, see the link below.

5

Carefully screen ads offering debt and bill consolidation, but are actually advocating bankruptcy. This option should only be considered last. Get more information from the FTC Consumer Alert link below.

6

Always check into several lenders before making your choice. Take your time and avoid pressure sales. The right choice can lead to freedom from debt. The wrong choice makes your situation worse.