Friday, June 22, 2007

Tips For Choosing A Free Debt Consolidation Company

The services of a free debt consolidation company can come in handy because trying times such as escalating debt and no way of making payments can cause a lot of tension as well as fears of having to face bankruptcy. What just started as one small loan, perhaps a payday loan, has evolved into an outstanding due that you seem to be trapped in the dreaded debt treadmill with seemingly no way out. It is at such times that a debt consolidation service can change your life for the better. Consolidating debt is an ideal option if you have more than a few creditors, paying different interest rates and are being harassed by them or their collection calls.

What Are Debt Consolidation Services

Once you have decided it is time you consolidated your debt, you may look up online for firms offering free debt consolidation help. Caution is necessary as though some firms may advertise free services, there may be hidden charges that they may surprise you with. Select a few firms that are reputed and that have no complaints registered against them in the local Better Bureau Of Business. Some credit card debt consolidation firms do offer help but may charge a nominal monthly fee for the same. There are many non profit consolidation companies that offer free help for many services.

Firms that offer free debt consolidation services offer other service such as credit counseling and help in planning a monthly budget etc. They will discuss your financial situation and then will approach your creditors and try to negotiate lower interest rates sometimes they may even get them to agree to a zero interest period! The firm may even be able to lower the total amount owed, waive penalties etc. Their job is to repair your credit rating and to get you debt free as soon as possible. Many firms are non profit and usually offer genuine free services, as they are service oriented, others use the word "free" to lure unwary people and surprise them with numerous hidden charges. Some firms offering free service may even be able to lend you a zero interest loan or a very low interest loan that you will repay in easy monthly payments.

Many of the free debt consolidation services also offer credit card debt consolidation services. This is possible if you have accumulated dues on several credit cards are have defaulted payments. They may get you to consolidate your dues to one card and negotiate with the creditors to reduce the total amount due.

While choosing a Company to consolidate debt, whether free or paid, be sure that it is reputable and that you stay focused on becoming debt free. All the help that you are being offered will not amount to much if you do not curtail your expenses and live within a budget. Make it a point to put away your credit cards and not use them until you are debt free. So when the debt situation seems to be getting out of hand, contact a reliable debt consolidation company and become debt free faster.

apurva offers expert advice on availing free debt consolidation and credit card debt consolidation. Read more articles by this author on

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