Debt consolidation online - Avoid scams and choose the best

If you are unable to pay off your debts due to a temporary hardship, debt consolidation may be the answer. Consolidating your debts makes sense when you have some income to pay your monthly bills. Most consolidation companies offer their services online where you can easily enroll for a free debt counseling session.

Once you fill out the enrollment form, a consultant will call you for a free consultation. The consultant will assess your financial situation and try to decide if debt consolidation is the right option for you.

Types of online consolidation

There are 2 types of online consolidation - debt consolidation program and a consolidation loan. A brief outline of each option is given below.

Debt consolidation program:
It helps you to combine all your bills and replace them with one affordable monthly payment. Under this program, online consolidation services negotiate low rates with creditors or CA and let you pay a single monthly bill which is them divided and distributed amongst all your creditors. Learn more...
Debt consolidation loan:
Unlike the program, you take out a personal loan to pay off your bills in a lump sum payment. You're then left with a debt consolidation loan on which you'll make a small repayment every month. Know more...

Benefits of online consolidation

Online consolidation services have a number of advantages compared to traditional services. Below are 3 benefits of online services.

Speed:
Online services are fast and convenient. You don't have to wait for an appointment or go for follow-up appointments. You can fill out the paperwork online and let your counselor start as soon as possible.
Compare services:
You can easily compare the reputation and accreditations of the various companies and then choose the one that can offers you the best program.
Compare fees:
You can check out the fees charged by various debt consolidation companies on their websites.

How to avoid online debt consolidation scams

If you wish to avoid online consolidation scams, follow these steps:

  • Do not give your Social Security Number or account numbers before you apply.
  • Do not work with any company that recommends a solution without reviewing your financial situation.
  • Avoid dealing with companies that charge large up-front fees.
  • Stay away from services that require you to pay high monthly fees.
  • Keep away from services that claim their offer is good only for a limited time.
  • Avoid dealing with companies that try to push you into applying for their services without giving you time to think about it.
  • Do not enroll with a service that claims to fix your credit history for free without making sure they are a licensed non-profit organization.
  • Avoid companies that claim to get you free government money to help pay your bills.

How to choose the best online consolidation company

In order to choose the best online consolidation company, follow these steps:

  • 01 Go through the companies' online reviews.
  • 02 Check out their client testimonials.
  • 03 Review the Better Business Bureau report about the company.
  • 04 Look for their accreditations on the company's website.
  • 05 Check out their fee structure.

Online debt consolidation services can help you get rid of your debt problems, but you need to make sure that you choose the right program.

Last Updated on: Tue, 6 Feb 2018