Consolidating debt with the right debt consolidation company
means that people with several debts will be free of making several payments
every month. The one payment they will be required to send will be for reduced
balances on all of their outstanding debts. The company will also have reduced
the interest rates so that the interest payments can be lower as well. The
entire process of debt consolidation, also known as credit counseling, helps
people extricate themselves from debt in just a couple of years, but the best
thing may be that credit counseling does not affect the credit score in any
way.
The 501(c) 3 Non-Profit
The type of company that performs the very valuable service
described above is a non-profit debt consolidation company known as a 501(c)3.
The specific times when the services of this type of company would be very
beneficial to people are when:
• It’s too
difficult to keep up with the monthly payments
• They are
making late payments
• The balance
never appears to go down
Types of Debt Excellent for Consolidation
The types of debts that people can present in credit
counseling are those that are unsecured, such as credit card accounts. Loans
that were obtained without offering collateral, known as unsecured loans, can
also apply along with repossessions.
Finding the Right Company
The right company is one that will give as much information
is needed by potential clients. Those who appear to be hiding anything are
companies to avoid. If the company is very forthcoming about their fees, potential
customers will know exactly what they will need to pay for services before they
sign up with the company.
The fact that the company’s representatives ask several
questions of their clients is also a sign of a good company. Companies that do
not show any interest in their clients’ individual circumstances are not going
to be able to help them, and they ordinarily do not. A company that is asking
for details, such as a client’s account numbers, will be able to work on its
clients’ behalf.
Who Qualifies for Debt Consolidation
Qualifying for debt consolidation means that people will
have unsecured debts of at least $3,000, most of which is comprised of credit
card debt. If the interest rates are 12 percent or higher, they may be able to
begin quickly reducing their debts through credit counseling right away.
