My Loans Consolidated

There are many debt consolidation programs that offer you professional help to resolve your debt problems. In today’s credit crunch, more and more of these programs emerge. Struggling borrowers who are looking for debt consolidation help are now targets of debt consolidation scams. The key is to find a legitimate debt consolidation company out of the so many fly-by-night companies that are mainly preying on you instead of helping you.

My personal recommendation is to find a Nonprofit Debt Consolidation program. This may be your best option. Nonprofit Debt consolidation programs can save you thousands of dollars in fees! You may not have heard much about these programs but there are legitimate nonprofit professionals who are passionate about helping you get out of debt. Unlike those for-profit companies and scammers, nonprofit companies are not highly advertised.

If you are looking for a debt consolidation company, be aware that there are different types of companies that you will have to choose from. Firstly you have the for-profit companies versus the nonprofit debt consolidation programs. And secondly you have the legitimate versus the illegitimate ones. Just mentioning the types of debt consolidation companies available it is already obvious which of the four above would be the best option for you.

Nonprofit debt consolidation companies don’t charge high upfront fees. Compared to other companies, upfront fees averages from $1,000 – $3,000, depending on how much debt is involved. I find the high fees very ironic, as the people that are being charged are the ones who can afford them the least! If they had that kind of money to “throw away”, they would probably not be in the financial turmoil they are in in the first place.

When shopping for debt consolidation companies, find out how much upfront fees are involved. If they charge an enormous amount of upfront fees, they are most likely illegitimate. You may wonder who would fall into this and actually pay these high fees. But you may get into the same situation if you read or watch their persuasive sales pitch promising you the world or are contacted by their hard nose sales person who are so convincing. If a company is  trying too hard to sell their debt consolidation consultation to you, be aware. They are most likely after the high upfront fees that they are about to charge you.

Nonprofit Debt Consolidation Programs won’t ask you to include your debts which have low interest rates. Although for-profit debt consolidation companies do have your best interest at heart, they tend to demand that all of yoru debts be included. By doing so, they are able to charge you higher fees because they are handling more accounts for you.

Nonprofit as well as for-profit companies actually know that there is no need to renegotiate loans with low interest rates. Nonprofit companies won’t demand you to include them while for-profit companies will insist on adding them for the profit they earn from the high fees. Illegitimate companies will even attempt to force your hand to include all of your accounts.

Legitimate companies (nonprofit and for-profit ones) will tell you up front what the actual monthly payment will be after they have completed their debt and income analysis. Illegitimate companies, however, use a technique that is called low ball quotes. To intice people to sign up for their service, they will provide you with a lower monthly figure than the payment is in reality. They may tell you that after you negotiate your debt, your monthly payment will be (say) $400 per month while in fact, your actual payment will be over $800 per month.

They deceptively give you a lower quote (or a low ball quote) to collect the upfront fees. After you pay the fees, they don’t care what exactly happens to the client. When all the negotiation process is done, you will be shocked to know that the actual payment is really higher than they had quoted in the beginning.

By choosing the right and the best debt consolidation company that you would want to work with, you will be saving thousands of dollars from enormous upfront fees, the extra charges paid because all debts are included and the damage from the low ball quotes.

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