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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.

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:

  • 1Shop around : Since you’d be paying for this service, you must look out for the best deal. Don’t think that you’re required to take the first deal available. The consolidators may try to make you feel that only they can get you out of the mess but that might not be true always. So, compare their charges and also check with hidden expenses.
  • 2Ask questions : Right, ask them as many questions that come to your mind, don’t hesitate, and the representative should be knowledgeable enough to answer all your queries. If you don’t feel satisfied with an answer, ask back.
  • 3Check the company’s background : You should know how long they are into the business and what’s their success rate. Check with sites like BBB; and also with the website of State Attorney General and FTC.
  • 4Keeping information private : Do not share personal information, like your bank account details, at their initial contact. Also, never authorize a check over phone.