If you need to consolidate your debts into one more manageable loan you need to ensure you choose a legitimate company.
If you find yourself in debt and close to bankruptcy debt consolidation can be a method of paying back this debt. Debt consolidation is taking out a loan to cover all your other loans; therefore merging your existing smaller debts into one larger, more manageable one. This loan should be a more secure one, with a low interest rate.
There are loan companies who specialise in debt consolidation; however it is essential that you find a legitimate company, otherwise you could end up in more trouble than before. Debt consolidation has been a big target of for scams, where companies have promised debtors that they will relieve their debt, but instead these loans are full of hidden costs and debtors end up in a bigger mess.
So how can I find a legitimate company?
The first thing you need to do is some research and pay your local Office of Fair Trading a visit. Here you will find lots of information on debt consolidation and the procedures that need to be followed. Websites such as thedebtsreliefreviews.com can also provide information on legitimate companies.
You then need to make a list of debt consolidation companies. These can be found using the internet or the Yellow Pages. Once you have a list work your way down it and dismiss any you think don’t seem legitimate. Once you have narrowed this down to about five companies it is time to begin contacting and comparing them.
What should I look out for?
When contacting companies there are some tell-tale signs to show if they are not legitimate. Companies who ask for account numbers before discussing their service should be avoided as a legitimate company will give out information, for free without asking for these. Don’t be pulled in by companies who offer quick fix solutions as debt consolidation loans will take time to repay.
If a company allows you time to consider their offer they will more than likely be legitimate. Use this time to read through the entire fine print; checking for any hidden costs. Often non-legitimate companies will tell you to take immediate action.
Taking your time to check debt consolidation companies will pay off and you will be able to successfully consolidate your loans into one legitimate loan, which is much easier to manage.