DEBT MANAGEMENT COMPANIES
Finding The Right Company For You
Debt
Management Companies can consolidate your debt.
Debt
Management Companies can lower your overall interest payments by
negotiating with your creditors.
Debt
management companies can also help you pay off your loans
sooner.
THE CAVEAT IS –
RESEARCH THEIR SERVICES, FEES AND PRACTICES BEFORE YOU SIGN A
CONTRACT.
RESEARCH:
Watch out for scams!!It is important to research debt management
companies to make sure you aren’t scammed out of thousands in fees.
Legitimate companies offer a valuable service, charge reasonable
fees, and are willing to disclose their terms.
There are
many legitimate debt management companies that operate online
and provide information through their website and over the phone.
In a few hours, you can research dozens of companies to find the
best one for you.
ASK THEM
ABOUT THEIR SERVICES: The first question you should ask is what
services the company offers. You want a company that specializes in
handling accounts. Ask how soon the company begins making payments
on your loans. Some companies wait several months before making
payments, raking up late charges for you.
Some
companies also offer certified credit counselors to help you
develop a financial plan. This can be a valuable service if you
want to consider other options for handling your debt.
COMPARE FEES:
All debt management companies charge fees. Reasonable fees consist
of monthly payments for each account handled. Companies who charge
large upfront fees expect you will drop out of the program before
they provide you full service. By comparing fees of several
companies, you will quickly be able to tell what is
reasonable.
REQUEST FREE
INFORMATION: Request a written quote of when accounts will be paid
off. Each account will have a different pay off date since balances
and rates will vary. A debt management company will be able to give
you an exact date because lower rates are predetermined by
creditors.
You should
also ask for a written copy of the contract before signing. Be sure
to review all items. Watch out for delayed payments or high fees
for unnecessary services.
As Always -
Shop Wisely, Do Your Research
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