Many people turn to debt consolidation to help them when they find that bills are piling up and becoming overwhelming. You should take action and find a way to pay your debt off. Or it might be useful for someone you know. If that is the situation then continue ahead to learn about getting your financial situation in order through debt consolidation.
1Certified Debt Counselors
Are the counselors at your debt consolidation company fully certified? Find out if an organization that certifies debt counselors has approved this organization. Are they backed by reputable institutions in order to prove these people are legitimate? This will give you a better idea of whether or not the company will be right for your needs.
Don’t be fooled by debt consolidators just because they claim to be nonprofit. Non-profit doesn’t mean you will get the best service. To determine if a company is reputable and high-quality, research the company’s standing with the BBB (Better Business Bureau).
Do you hold a life insurance policy? Consider cashing out the policy, in order to meet the demands of your overwhelming debt. Get in touch with your insurance agent and determine the amount of money you can obtain against your policy. You can borrow back a portion of your investment to pay off your debt.
If you’re a homeowner, consider refinancing your house and using the cash to pay off your debt. Since mortgage rates are showing historical lows, this could be a great solution. Also, you may get a lower mortgage payment than you already were paying.
Once you’ve gotten a loan for outstanding debts, speak will creditors to see if you can work together on a settlement. A lot of creditors will settle for a balance for a lump sum that’s as low as 70 percent from what’s owed. In the long run, debt consolidation may have a positive affect on your credit score.