How to Find Legitimate Debt Consolidation Services

If you are trying to manage high interest debts or unsecured loans, then you are already aware that it is an uphill battle. Between the high interest and the additional fees that are often associated with the loans, it is easy to end up with too much debt to handle. Debt consolidation services are a solution that can help reduce the expense and make it possible to work on reducing the debts.

Researching the Companies:

When seeking a legitimate consolidation and settlement service, it is important to spend time researching the specific company to find the best company for individual needs. Look for consumer reviews about the different companies and verify that the company is registered with the state.

Legitimate companies will have appropriate registration for tax purposes with the Attorney General’s office in the state where it primarily practices. Those who are recommended to use an online service for a company outside the state should look at the state of origin and not the state of personal residence to determine legitimacy.

All legitimate consolidation services will have appropriate state registration, any licensing requirements and will meet other state laws regarding the type of services offered. If a company does not meet state requirements for the state it originates, then it is not likely to offer legitimate services.

Look at Payment Plans:

It is best to find a debt consolidation reviews or comparison site that will show you your different debt solutions and their respective payment plans. Ideally you want one where consumers will not pay any upfront fees and are only charged after services are rendered.

Any legitimate consolidation or settlement service will not have upfront fees in accordance to federal laws. If a company is charging fees without any service provided, then it is a warning to seek other debt solutions.

Types of Services:

A legitimate consolidation service will fall under a few potential categories. Depending on personal preferences for debt management, you can select a few different services.

The first option is taking out a consolidation loan through a company or peer-to-peer loan option. While it might seem that a loan is an appropriate measure, if you are already battling debt, it is actually hard to obtain funds. A consolidation loan will require a high credit score, which might be not possible when you are already facing challenges paying your current debts.

While a loan is not practical for most individuals, it is possible to use a consolidation service that focuses on debt settlement. The consolidation companies start with lowering the monthly payments by reducing the interest rates and then start negotiating with creditors to settle the account.

As a result of combining the consolidation for easier monthly management and working on a settlement arrangement, it is possible to pay off debts within a 24 to 48 month period, depending on the amount of debt and the number of debts involved.

Best Solution:

When searching for a legitimate consolidation service, it is best to use one of the consolidation companies found on a debt consolidation reviews site that matches you with the customized solution to your debt problems. The matching service provides consumers with several potential debt relief options based on the information provided during the application.

After matching consumers to a legitimate company, it is then possible to start working on consolidating and settling the debts. Using a legitimate service will make it easier to get the debts under control and start working toward a settlement that pays off loans and credit cards.

The settlement solution will have a temporary impact on the credit rating, but it is possible to immediately begin rebuilding the scoring information. Filing for bankruptcy will result in a negative mark on the credit history for ten years and can potentially ruin job opportunities.

Loans are better to avoid because it results in a debt cycle that ultimately rebuilds the debts. In many cases, your interest rate will not be low enough to make the loan worth obtaining since the best rates are only offered to men and women with excellent credit.

Finding a legitimate consolidation service is not as hard as it might sound. By doing your due diligence you can find a reputable debt relief company that will not charge high fees and reduce your debts by thousands.