Traits of The Top Credit Card Consolidation Companies

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Traits of the Top Credit Card Consolidation Companies

Debt consolidation can be quite effective as a strategy for regaining control of credit card debt. The key is finding the right method for your particular situation and executing it faithfully. While accomplishing this on your own is doable, some people find they perform better with the help of a professional. 

However, a lot of so-called “professionals” are more about their own enrichment than helping you solve your problem. Let’s take a look at the traits of the top credit card consolidation companies to help you find proper assistance. 


How Debt Consolidation Works

Credit card debt consolidation involves combining all of your outstanding card balances into one loan, which can make paying them off faster, easier and less expensive. The key is to get a new deal with an interest rate that is lower than that of the aggregate rate of your existing obligations. In some cases, you can also get a lower overall monthly payment, though this will usually mean a longer repayment period. 


How to Know if Consolidation Will Work for You

To decide if a consolidation is worthwhile, you’ll need to add up all of your credit card bills, take note of the amount of the monthly payments and the interest rates charged to each of them.  Run those numbers through a debt consolidation calculator to see how you’d come out.  This way, you’ll know what to look for when you’re talking to people who can help.


What to Look For in Consolidation Assistance

Should you decide to get professional help with your consolidation, the top credit card debt consolidation companies share the following traits. 

1. Free Initial Consultation – Legitimate companies prefer to earn their revenues by providing good service. However, there’s no way to determine whether or not you're a viable candidate until your situation has been assessed, your goals have been determined and a strategy has been formulated. These should be offered at no charge. 

2. Full Disclosure – You’re told up front what’s expected of you, what it will cost, how it will work and what you can expect from their services. They will also be completely forthcoming about what you’ll be charged and how they will expect to be paid. 

3. No Upfront Charges – Legitimate companies bill clients after they’ve performed the service, not before. Anyone asking for cash upfront is both operating in violation of the law and is likely planning to take your money and run. 

4. Terms Clearly Explained – The devil, as they say, is in the details. Lots of “gotchas” can be hidden in the fine print. Loan payments can look super affordable, until you learn you’re expected to make two each month. Or, what if they charge a prepayment penalty to cover the interest income they’ll lose if you pay the loan off sooner than expected? That’s something you definitely want to know before you sign up too.

5. Details Presented in Writing – Any time you’re dealing with finances, you should always get the details in writing. It’s the only way to know for certain what’s expected of you and what you can expect in return. A written contract will be the only tool you’ll have for relief if things go sideways. 

Looking for these five traits of the top credit card consolidation companies will help you find legitimate and effective help. Take your time and choose carefully. Getting into debt took a while and so getting out will too. There are no easy overnight fixes. Anyone promising them is definitely trying to rip you off. 

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