Finding a Good Consolidation Company

Finding a good debt consolidation service is much easier if you know how to identify the hallmarks of a respectable company. On this page, you'll find all the things a trustworthy consolidation service will let you know.

• The total cost of your debt repayment. Your debt consolidation company should quote you an exact figure for your monthly payment, and they should also inform you how long your repayment will take. To determine the total cost of your consolidation, multiply the amount of your payment by the number of months your plan will take. Your service should be able to offer you this information readily.
• A full accounting of all fees involved. Good consolidation services won't try to conceal the fees they charge. Your debt consolidation company should explain every fee you will pay, why you will pay it, and how much it will be. Your service should also be willing to negotiate any fees that seem excessive or superfluous to you.
• Professional consolidation doesn't always work. No debt repayment plan is perfect, which means there are no guarantees that it will work. There is a possibility that your debt consolidation service may not be able to provide you with better interest rates, in which case you would need to drop out of the program and find another strategy. A consolidation service should not be afraid to explain the possibility of failure to its clients.
• The attrition rate. The attrition, or drop-out, rate of your debt consolidation service is obviously not something they want or need to advertise, but they shouldn't hesitate to provide this information if you ask. In general, the attrition rates for consolidation programs are extremely high, but a good consolidation company will have lower-than-average drop-out rates.
• Their credentials. Before you enroll in a debt consolidation program, you should know exactly what the company you choose does and what qualifies them to do it. For example, if you believe you are signing up for credit counseling, your agency should be a non-profit organization with nationally certified counselors. With consolidation, you want a company that is recognized as a legitimate business and can provide you with references.
• Your rights. Your debt consolidation service should not hesitate to explain your rights as a client to you. For instance, you should know whether you have the right to drop out of the program whenever you wish. You might also want to find out how the service will ensure that all of your creditors are paid on time each month.