How to Rate Credit Card Consolidation Companies
Credit card consolidation companies combine all your credit card debts into one easy payment for you. They negotiate with the creditors to decrease the total amount owed and can negotiate better interest rates overall, thus giving you a lower monthly payment. Credit card consolidation companies are helpful to many but some are scams so you need to be aware of what to look for in the company.
Other People Are Reading
Instructions
-
-
1
Start with a list of credit consolidation companies from the phone book or online search.
-
2
Check with your Better Business Bureau to see if a company has any strikes against it. Consumers report problems to this bureau and they are a trusted resource.
-
-
3
Call the Attorney General's office in your state.They can tell you if any charges have been filed against a company. Ask them about licensing procedures for these types of services. When investigating a company, see if they adhere to the policies and if the credit counselors are accredited.
-
4
Seek advice from the Federal Trade Commission, according to the debttriage.com website. Ask if they have any pending lawsuits against a company.
-
5
Inquire exactly how long a company has been in business and how it consolidates debts and acquires lower interest rates for its customers. Compare its rates and fees with other consolidation agencies in your area.
-
6
Get everything in writing when you agree to work with a company on reducing your debt. Make sure they put on paper what their fees are and when you have to pay them.
-
7
Contact your creditors after signing with a debt consolidation company. Make sure the company is paying each month and in a timely manner and check again every couple of months.
-
1
Tips & Warnings
Before you get involved with a credit card consolidation company, you can try what you can do on your own. Phone calls to your creditors asking them to lower the interest rates will often bring good results, particularly if they see that you are earnest about paying them back. If you can manage to pay from 50 to 75 percent of what you owe and ask them to settle for that amount, they are often willing to do so because the bulk of what you owe is usually late fees and interest. Just make sure you get the terms in writing.
