When you’re searching for a company to consolidate your credit card debt, then you must go forward with extreme caution. Though there are reliable credit card debt consolidation companies which can help you pay off your debts, there are scam consolidation companies that always try to make the most of your financial hardship.
How can you choose a dependable credit card debt consolidation company that would work in your best interest? Given below are some tips and red flags to watch out for when you’re trying to consolidate your credit card debts:
5 Tips on choosing a reliable credit card consolidation company
1) Excessive fees or “vague” fees
If a credit card debt consolidation company doesn’t clearly tell you about their fee structure, this is something you should be suspicious about. Make direct queries about their fees and charges. In addition, you must understand what “affordable” fees should be and stay away from debt consolidation companies asking for too much fees against their services. If you’re already suffering from a huge amount of credit card debt, then excessive fees is the last thing that you want.
2) Check the company with the BBB
You should always check the background of a consolidation company with the Better Business Bureau. The BBB rates companies on the basis of their past performances and offers membership to companies that meet their standards. If a company is not accredited by the BBB or it doesn’t have a good ranking, then you must look for online resources to find out whether there are any complaints against that company. If there is any, then go for another company.
3) Aggressive sales approach
No credit card debt consolidation company can compel you to enroll for their services. If a salesperson or a debt counselor appears to be aggressive in his conversation, then terminate your call. It is quite probable that the salesperson is not taking your best interest into consideration. Instead, he would possibly receive a commission or incentive if he can get your business whether the service is beneficial for you or not.
4) The time factor
If you’re uncertain about which debt relief option you should go for, the amount of time spent to assess your situation is vital when you’re seeking suggestions from different companies. If a salesperson or debt counselor is not dedicating enough time to understand your financial condition, then it’s not a good sign. If they promptly (in less than 15 minutes or without comprehensively understanding your financial condition) suggest a specific option, product or service, you have to take their suggestions with a lot of caution. Any professional would take sufficient time and know about your particular situation prior to advising which option is helpful for you.
5) Impractical or too good to be true
Most consolidation companies have to advertise to lure customers. However, if you find a company advertising too often, then it doesn’t signify that company is the best. Furthermore, various advertisements come with impractical and bizarre statements regarding the benefits provided to you. Whenever you come across such an advertisement, you must be vigilant about the company. Reputable credit card debt consolidation companies don’t make unrealistic promises.
If you follow the above tips, it would help you prevent costly mistakes when you start the process of consolidation and try to become debt free. Do your research well and watch out for warning signals while selecting a credit card consolidation company; you would soon be on your way towards debt freedom.
Today’s guest post comes from Jessica of Debt Consolidation Companies.