Avoiding predatory consolidation companies is important in getting back on track and evading further debt. There are numerous businesses that make big promises and don’t deliver, understanding how to identify these businesses before signing an agreement with them is important.
If you are under serious financial stress and are looking for a quick solution, there are options out there but you need to make your decision with a clear head. Making serious financial decisions while under duress can lead to even bigger problems.
Things to watch out for:
– Upfront fees, if a company is basically putting you into further debt before they even assist you – there is a problem.
– Pushy sales people trying to get you to sign a contract quickly.
– They state they can help you regardless of your situation
– They only talk about the positives and don’t disclose any negatives
– They are not a registered business or the sales people don’t have proper certifications.
– If they propose a debt agreement, be sure you understand the negatives of this option.
Other things you can do (due diligence):
– Check for online complaints and go through reviews
– Check to see if they are a licenced business and registered as a financial advisor/counsellor/debt administrator
– Are they a for-profit business, who’s interest do they have in mind
– When talking to a company ask for the positives and negatives of their service(debt consolidation) in writing
If you have utilised all of the above and decide to go with a debt consolidation company of your choosing, you should be in good shape. It comes down to doing your own due diligence and making an informed decision whilst not under stress.
Another option is to reach out to government funded non-profit financial counsellors. They are not only trained in financial services, they also have the resource and contacts to help with most situations. They can clearly provide you with suitable options based on your situation with your best interests in mind.
Contacting both, a non-profit financial counsellor and a professional debt consolidation company may also be a good tactic to see what the similarities are of each service. In some cases you may receive enough information to work out a plan of your own. Identifying reputable debt consolidation companies or agencies comes down to a bit of research and knowing how to weed out the untrustworthy.
To learn more about debt consolidation and the benefits and risks that come with it, learn more here.
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