One of the best debt relief options that most of the borrowers opt for is debt consolidation. This in fact comes in different shapes and sizes just as the different debt relief companies. This form of debt relief will help you a great deal in managing your finances.
The list includes anything from:
- Bad creditconsolidation loans that are offered to people having less-than-perfect credit score
- The so-called “payday” loans to
- Debt settlement plans.
The list seems to be endless. Therefore, as a consumer, you may find overwhelmed at times as to choose the best debt relief option according to your financial situation. You will have to:
- Outline your financial goals
- Research the consolidation companies and
- Review all available debt consolidation choices to know the risks and rewards of consolidating credit card debts.
The debt consolidation companies typically do a great job in marketing their services. There are lots of ads you will see on the television, newspaper, radio, and especially on the Internet. Often, these companies will advertise that they provide easy and achievable solutions to the consumers, even those with bad credit whether it is for unsecured credit card debt bills or any other.
- Also remember that primary goal of a money lender is to make money, which they can only if you agree to purchase their debt consolidation loan and pay interest on them on a regular basis.
- In addition, to that you must be wary of companies that advertise providing “quick and easy” solution to your debt issues because there aren’t any. In general, such companies tend to use specific terms such as ‘payday loans’ and ‘bad credit’ more extensively in their advertising.
However, you should not confuse yourself looking at the ads of a loan consolidation company because their reputation may not be as big as their advertising budget. More often than not, what you will see will not be what you get.
Outline your financial goals
Making the right choice for debt consolidation Pennsylvaniaby itself is a big decision. It is important that you take necessary steps so that you improve and get your financial picture clearly and in the right way. There are a few specific steps to follow that will help you with that and put you back on the road to better money and debt management and financial freedom.
You will need to consider and outline your financial goals while looking into a consolidation loan. It could be:
- For a simple and quick fix
- To find the best debt relief program and loan that will offeryou an easy way out of debt
- To gain enough and helpful financial education and advice that will keep you debt free for life.
When you know your goals clearly, you will be able to select a solid program that will focus on the total financial picture as well as help you overcome your debt, no matter whatever the type of it is, once and for all.
Be well prepared
Apart from your name, address, and contact information as the basic requirements the loan consolidation companies will also ask you your Social Security number along with a lot of other personal financial information. Therefore, it is important that you are well prepared before you contact the company about a consolidation loan. Specific things that you will need to keep ready and be ready with include:
- Your income details be it weekly, monthly or annually
- Any additional income such as salary of your spouse, child support, alimony and others that are to be considered as your income
- Your credit card balances
- The interest rates as you may find on your monthly statements and
- Information regarding any other unsecured debts or bills.
All these will help the company to make a lending decision quickly and as desired by you.
Research the consolidation companies
Shopping around well for a consolidation loan or for a debtrelief solution will help you to find out whether or not the company or the option offered is right for you. Make sure that you research well about the loan consolidation companies and follow a specific process for that.
This process includes putting together a list of such companies that you find suitable to do business with. Once you are ready with your list you must do your homework that includes:
- Find about each company with the Better Business Bureau to find all positives and negatives from one source to helpyou narrow your choices
- Determine the typeof loans and debt consolidation plans offered by each of these companies
- Find out whether these fit your particular needs and your financial situation and
- Assess the interest rates, repayment terms, loan tenure, additional fees anddisclosures of each company as well as each debt consolidation loan option or plan.
Remember, the quickest way to come out of debt is not often the smartest or most economicalmove. You will be better off if you work with a loan consolidation company that offers multiple options according to the needs of each customer rather than a ‘onesizefitsall’ solution for debt consolidation.
Review all options
This last step is most crucial. Once you are done with your shopping, it is a good idea to narrow down your options and limit it to two or three companies. At this juncture you should also take a close look at the different consolidation plans considering different aspects such as:
- How these work
- What you will payand
- The features and the benefits offered of each plan.
Ask about these following things specifically when you meet the loan consolidation or a debtrelief company:
- The interest rate
- The monthly due date
- The monthly payment amount and mode
- The fees
- The repayment terms and tenure
- The additional fees and
- Early pay offs.
Also make sure that you ask whether or not the loan will put you into further debt. It is always better to consult with a qualified credit counselor for making sure you eventually end up choosing the right debt consolidation option.