Best Debt Consolidation Companies – Who Are the Best?

December 31, 2009 by  Filed under: Debt 

The best debt consolidation companies are in an industry as varied a landscape as the Rocky Mountains. Consumers facing large credit card debt, but want to avoid bankruptcy, are turning to debt consolidation in record numbers to cure their financial woes. As with any industry there are quality companies who have their client’s best intentions in mind, and there are other companies who are merely trying to make a quick buck and then ignore the client’s questions and needs once they get paid.

Well for those of you searching for the best debt consolidation companies, there are many important factors to consider on all the prominent debt consolidation companies that are currently operating based on several performance criteria such as:

Price, fees, average settlement, number of customer complaints, customer service, and the number of years in the business. These are just some of the key factors to consider when choosing a company. It is important to do your research first.

The best debt consolidation companies offer different things to different people. It is important to clarify what you are looking for. Are you trying to get a new loan on your home to pay off debt? Are you trying to consolidate student loans? How about credit cards? Are you looking for the best debt consolidation companies for credit card debt? Knowing what type of program you need is the first step to take, once you have decided what type of debt you need to work with, it is time to choose a company.

It is very important to use the best debt consolidation companies for their service. But you need to research and do their own vetting process in order to decide which company they want to work with. Each company has a different structure to their programs. Some have much lower enrollment fees, but will have a higher monthly charge, while others might have a higher enrollment fee, but with very low monthly negotiation charges. I recommend calling a couple different companies and speaking with their representatives to decide which option is best suited to your particular needs.

In addition to fees, you need to research what types of arrangements a debt consolidation company has with each creditor. Even though they might advertise a low 0% rate with creditor A, their rate for creditor B (which you have an account with) might be much higher. Generally, we see the rates offered by each creditor in the 5-10% rate when you enter a debt management program. For people with accounts in the 20-30% range, this can help drop the monthly payment dramatically, which in turn helps pay off the card even quicker.

This type of debt consolidation program is great for people that find themselves swamped with paying five or more accounts each month. A lot of us find it difficult to remember to pay each creditor on time, and occasionally, we are late on an account. Each time you are late, you can be assessed a fee near $49, which add up quickly. A debt consolidation program will combine each of your monthly payments into one payment. You will find it much easier to make one payment of say $500 instead of five $100 payments scattered throughout the month.

Overall we have found the best debt consolidation companies to be a viable means for consumers to eliminate their outstanding unsecured debt, however choosing the right company can be the difference in thousands of dollars off what you owe to the credit companies. So long as you do your homework and choose a reputable company, you should be quite satisfied with the results.

#1 – Impact Debt Relief

#2 – Eagle One Debt Settlement

Feel free to contact us for more information.

Steve Sharma
Senior Staff Researcher

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