subject: The Truth about Debt Consolidation Agencies? [print this page] When looking up information about services which claim to be able to help you solve your debt problems it is good to look up exactly how the service works and whether it can really actually help you or hurt you. You will find that one of the more trust-able forms of debt relief is through a plan called debt consolidation.
What is debt consolidation? Paula de la Torre Editor of the "Best Debt Consolidation Services" website -- http://www.FreeDebtConsolidationQuotes.net -- pointed out; A consolidation plan is a loan given out by companies to help clients who have many different debts all demanding payments at one time. The point of a consolidation loan is to cure clients of all debts with other companies, and spin it all into one single debt with one company without having to worry about all of the additional fees between many different companies building up and increasing debt to out of control levels How does debt consolidation work? Consolidation is a loan, which is assessed with a client through a consolidator which is a representative of the consolidation company that assigns loans to qualifying customers. The process of giving a consolidation loan works as this; the consolidator and the client get together in a private meeting to discuss all debts currently owed by the client. The consolidator totals up all debts and creates a single digit number which is proper to pay off all companies owed. Then if the consolidator requires a secured loan they will need the client to sign over a personal asset of equal or greater value to the loan being given. Then the consolidator takes the total loan amount, and uses the clients monthly living expenses and salary to create a monthly payment plan to pay back the consolidation loan which is affordable to the client and will help prevent future debt P. de la Torre added. What makes a bad consolidation company? Illegitimate companies which offer consolidations are companies who are not out to help the clients stay out of debt, but to take advantage of the clients crisis situation and make as much profit off of the clients bad fortune. To identify an illegitimate company you need to know how to identify the signs. A illegitimate company will not be found on registry listings for certified businesses, they will have hidden fees in fine print of signed agreement, they will most likely also be located out of country areas in which you are located, for example Nigeria or Africa. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.FreeDebtConsolidationQuotes.net
