Bill Consolidation Company - Comparing Debt Management Programs
A bill consolidation company takes the hassle out of managing
your debt. They handle your monthly payments, negotiations with
your creditors, and repayment strategy for a small fee. Through
reduced rates on your bills, debt management companies can save
you years on debt payments. But before you sign up with a bill
consolidation company, make sure they are skilled and have
reasonable rates.
Signs Of A Good Bill Consolidation Company
Bill consolidation companies work to get you out of debt. A good
debt management company will have already established
relationships with creditors, so they will know what the
standard rate reduction will be. All debt management companies
will get you the same interest rate reduction on credit card
accounts.
With experience, bill consolidation companies can give you
specific dates on when your accounts will be paid off. They
don't even need your account number to tell you want month and
year each account will be debt free.
Professional debt managers will also be open about their fees.
Companies will either charge you an upfront fee that is
partially refundable at the end of the program or a small
monthly fee while you are in the program.
Evaluating Debt Management Programs
When comparing debt management programs, look for details. You
want a program that can give you specifics about pay off dates
and fees. Also evaluate how fast of a response you get to your
questions.
Fees are a cost to consider. Upfront fees can be cheaper,
especially if you get a partial refund at the end. However, many
people leave the program before they are completely out of debt,
losing out on services and the refund. A pay as you go system
offers you the most flexibility.
What To Watch Out For
Besides outrageous fees, also watch out for companies that try
to get you to consolidate all your bills. For student loans and
mortgages, debt management companies cannot get you a better
rate. But if they handle the account for you, they will charge
you an additional fee.
Be wary of companies that ask for your sensitive financial
information, such as account or social security numbers. These
companies are either scammers or inexperienced.