What’s important to know about consolidating debt? Where can the information be found? Can I be certain that the information is provided by experts and is 100% accurate? This article can answer your questions, so read on to learn more.
Check out your credit reports closely. You have to know why you are in this position to start with. This will allow you to stay away from going the wrong way with your finances after getting them in order.
Don’t necessarily trust just any non-profit debt consolidation company when you’re researching your different options. Many predatory debt consolidators or predatory lenders will hide behind a nonprofit persona but may give you many expensive reasons to regret working with them. Always do your research on any company you are thinking of working with.
Make sure the counselors working for a debt consolidation service have the proper qualifications. Do they have any certifications? Do they have the backing of reputable institutions to help prove their strength and legitimacy? This is a great way to figure out whether the company you are considering is worth your time.
If you have been paying into life insurance, it may help you out. You should think about cashing your policy so you can pay your debt off. Call your insurance agency to see if you can cash in your policy. Sometimes you can pay off your debt with an amount borrowed from your policy investment.
You may use a credit card with a low interest rate to consolidate smaller debts with higher rates of interest. You may be able to save money on interest charges this way. Once all of your debts have been consolidated onto a single card, get to work on paying it prior to when the introductory rate goes away.
If you’re a home owner, you might need to think over getting your home refinanced and using that money to help with your financial situation. Mortgage rates have been low lately, and that means now would be a great time if you’d like to consolidate the debts you have this way. Additionally, your mortgage payment may be lower than what it originally was.
You may be able to pay off your high interest credit cards by drawing some money from your 401K or retirement fund. Only resort to this option if you feel that the money can be repaid. If you can’t pay the money back then you’re required by law to pay a penalty and tax.
Credit Counselor
Looking into non-profit consumer credit counseling. A credit counselor will help manage your debt by putting all accounts into one account. A credit counselor will not impact your credit rating as badly as going through a company offering debt consolidation.
Look for a debt consolidating company has counselors that are certified. You’ll find companies that you can trust through the NFCC – the National Foundation for Credit Counselors. This can help you feel more comfortable as you’ll be dealing with a good company.
If the plan is to go with a debt consolidation service, do research first. If they use a “one size fits all” approach instead, move on to a different firm. That approach is unlikely to be effective.
See if the debt consolidator will customize payment programs. A lot of companies do one standard plan, but that is not good because your budget may be different than other people’s. Seek out an organization that offers payment plans tailored to the individual. This type of organization may seem more expensive initially, but you will save money overall.
Find out what their privacy policy is. Know how your information is kept in their system. Ask the company if the files are encrypted. If you find anything lacking, then you may be putting your financial information (and your identity) in jeopardy of being stolen in the future.
Take the time to do the proper research on a handful of legitimate companies. Inquire with the BBB to make sure you can trust your chosen company.
Debt Consolidation Company
There is no law stating consolidators in Maryland or Florida must have a license. If you live there, think about using a debt consolidation company from another state. There is not much legal protection if you’re dealing with an unlicensed debt consolidation company.
As far as learning anything goes, it’s best to find out information from the experts. Articles, just like this piece, can help you figure out what you need to know. You should now have a better understanding of debt consolidation programs and what they can do for you.
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