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.
Benefits of online consolidation
Online consolidation services have a number of advantages compared to traditional services. Below are 3 benefits of online services.
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:
- 1 Go through the companies' online reviews.
- 2 Check out their client testimonials.
- 3 Review the Better Business Bureau report about the company.
- 4 Look for their accreditations on the company's website.
- 5 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.