When you realize debt consolidation could help you salvage your finances, you want to start immediately. It’s vital to avoid scams and untrustworthy companies, though. Let’s consider a few ways to find an experienced debt consolidation agent you can trust and avoid the bad seeds.
Tips for Avoiding Debt Consolidation Scams
Follow these tips to find a reputable company that operates honestly. By choosing your debt consolidation company or non-profit with care, you can find a financial partner that helps you quickly eradicate your debt.
Investigate Honest and Dishonest Companies
Instead of choosing the first company that appears in an Internet search for debt consolidation, start by visiting the websites of the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). These organizations track financial scams, including debt consolidation scams. Any companies known for harmful behaviors appear there, as well as those highly rated for their honesty.
Ignore Unsolicited Offers and Guarantees
A few items should throw a proverbial red flag up to you that a company scams its customers, according to Amone. Honest companies don’t:
• Send unsolicited offers
• Tell you to stop paying your bills
• Charge upfront fees
• Promise results.
Debt consolidation agreements between creditors and debtors depend on the specific situation. No honest company guarantees a specific result, according to Consumer Affairs. Honest firms and non-profits typically provide a range of discounts, expressed as a percentage, that companies with which they negotiate debt have agreed to reduce amounts owed. For example, an honest organization might state that on average their process results in reductions of debt ranging between 10% and 50% as a part of the consolidation process.
Read Reviews on the Better Business Bureau Website
Visit the Better Business Bureau (BBB) website to read reviews of each agency. Beware, because even legitimate debt relief companies have some dissatisfied customers. Typically, these individuals did not understand that honest firms don’t offer guarantees. Note any complaints about the firms that passed muster at the FTC and CFPB.
Interview Many Honest Consolidation Organizations
Once you’ve eliminated the dishonest organizations, phone the honest ones. Ask each company’s representative the same questions as the others. Write down each option’s responses so you can compare them easily after you finish your phone calls. Ask about any situations that consumers reported on the BBB website.
Choose Your Debt Consolidation Organization
Finding a straightforward, helpful firm like Symple Lending takes time. If you do find a questionable company while vetting firms to use, report them to the BBB, FTC, and CFPB to help others remain safe, too. Once you partner with your debt consolidation firm, depending on the amount of debt you owe, on average, it takes up to seven years to pay it all off.