Exploring The Option Of Non Profit Debt Consolidation Services

When facing multiple debt issues with no particular solution in place to combat this complication

, debt consolidation might be the most obvious and practical solution that one could explore. When you opt for a debt consolidation loan, this highly functional loan generally allows you to merge and combine all your debt accounts under a single credit account, and also can assist you in eliminating all your debt in the shortest duration possible. For those that are looking for functional debt consolidation loans, there are numerous companies out there today that offer non profit debt consolidation services. Although they are named non profit debt consolidation services, you are not actually receiving debt consolidation assistance free of charge. The companies that offer these services usually do not charge upfront fees, but instead camouflage their service charges by offering interest rates that are slightly higher than market rates. Thus although they appear to be free on the surface, you actually do end up paying the company service charges, albeit in a different form.

In view of the increasing number of people facing mounting debt issues recently, there has been an increase in the number of debt consolidation loan providing companies as well. And when you seek such assistance, it is best that you ensure that the company that you are dealing with is endorsed by the Better Business Bureau (BBB). There are many illegitimate and shady financial companies out there today that offer non profit debt consolidation loans and services, and you need to ensure that you do not deal with any of them. Signs of illegitimate companies that offer non profit debt consolidation services include:

Quotations that cite absurdly low monthly payment amounts some companies try to attract customers by offering them unusually low monthly payments to start with. But when you actually read through the agreement, you would usually realize that the monthly amount that you agree to would usually increase every year and potentially start burdening you after the second year onwards. For the record creditors generally do not accept reduced monthly payments to what was previously agreed with you, thus if your debt consolidation firm promises differently, you should be aware that there may be something amiss with the offer.

Offers of other services such as debt settlement included as well some companies tend to offer other services with consolidation services, just to ensure that they can charge you as much as possible for services that you might not need in reality. It is advisable that you stick only to debt consolidation services and reject all other offers from the debt management company that you are dealing with.

Exceptionally high interest rates charged when the company that you are dealing with charges extremely high interest rates, you should start investigating the legitimacy of the company. This is the most popular scam out there when we speak of debt consolidation services, as an illegitimate company would usually try to charge you as much as possible in terms of interest rates before you sign the deal. For the record, legitimate non profit debt consolidation companies charge a competitive, consistent amount for handling fees of each account that is managed by them, and these amounts are usually subsidized by financial companies.

Demands for personal details shady companies would request for personal information such as bank account numbers, social security numbers and other similar information before actually providing you with a quote. You should be aware of the fact that to provide a quote to you in terms of debt consolidation, a company only needs your name, credit account balances as well as your current interest rates. Requesting for any other information before giving you a quote can tantamount to identity theft.

Debt consolidation help is usually highly useful for those that hold multiple credit card accounts and are struggling to cope with monthly interest charges of these credit cards. Merging all your credit card accounts under one credit account should help you get rid of paying excessive amounts to several creditors in terms of interest rates, and may also help you clear all your credit card debt quickly and effectively. If you are comfortable with the slightly higher interest rates offered by nonprofit debt consolidation packages, you should definitely explore this option to put an end to your debt woes.

by: Ask Bill

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