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Debt Consolidation Unsecured - How to Get the Best Debt Consolidation for Unsecured Debt

educate yourself vet thoroughly make contact

If you are interested in how to get the best debt consolidation for unsecured debt, chances are you are currently in a negative credit situation that feels overwhelming at times. If this is the case, it is imperative that you consciously slow down and resist the urge to sign a contract with the first consolidation company that promises to get you out of debt fast. There are some terrific consolidation agencies out there but there are also sharks in the water that are looking to capitalize on your vulnerable financial state. To avoid being scammed or stuck in a consolidation agreement that is fraught with hidden fees, stick to three simple guidelines. First, educate yourself about consolidation loans for unsecured debt. Second, vet your prospective consolidation agencies in order to ensure that they operate above board. Third, make personal contact with your prospective agencies before signing on the dotted line.

Educate Yourself

It is important to understand the consolidation process before stepping into it, so that you can easily decipher which programs are offering real solutions and which are simply out to collect your fee money.

Debt consolidation for unsecured debt encompasses any debt for which you have not put up collateral. For instance, credit cards, medical bills and personal loans are all considered unsecured debt. When you enroll in debt consolidation for unsecured debt, you are essentially taking out one large loan in order to pay off all of your various lenders in one fell swoop. This way, you can put an end to all late fees, collection harassment and constant pressure associated with your over-extended accounts with creditors. Your consolidation loan is then repaid to the agency from which you borrowed it, via a single monthly payment that is custom tailored to fit your budget comfortably.

You can expect three general fees to accompany any debt consolidation for unsecured debt program. First, most programs charge an initial enrollment fee. Second, expect to pay an ongoing monthly fee for services rendered. Third, anticipate negotiating an interest rate for your new consolidation loan.

Vet Thoroughly

It is wise to investigate each of your prospective consolidation agencies in order to ensure that they have a positive business reputation. The Better Business Bureau (BBB) is a third-party, watchdog organization that has protected consumers from business fraud for almost one hundred years. Before settling on a consolidation company with which to do business, you should check with the BBB to make sure that the company does not have unresolved issues with previous clients and to ascertain whether they have a earned a good reputation in the business community.

The BBB will report any positive and negative consumer feedback on each of your prospective debt consolidation for unsecured debt companies and will assign the company a letter grade (A for the best, F for the worst) to express their overall opinion of each company in question.

You would also be wise to check online consumer debt forums to read unbiased consumer reviews of various debt consolidation programs. You may get a good tip on a terrific debt consolidation for unsecured credit program and you will likely find warnings against companies that have proven themselves unable to make good on their promises to customers.

Make Contact

Conducting initial company research via the web is great but once you have a small list of debt consolidation companies that look promising, you should contact them directly. This is the only way to adequately gauge the customer service and knowledge levels of any given debt consolidation agency. Make sure to inquire as to the specific fees each company charges and dig deeper to discover whether penalty charges or interest increases are a part of your contract.

Do not be afraid to negotiate with your prospective consolidation agencies for lower rates than are initially offered. Debt consolidation for unsecured credit represents a fiercely contested market, in which loan providers are fighting hard to win new clients. Make sure your prospective agencies understand that you are pursuing other consolidation companies as well and you may be surprised to find how flexible they become with your rates.

If you find any of your prospective loan terms confusing or misleading, contact a lawyer or consumer watchdog agency immediately for assistance.

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