Debt Consolidation - Important Facts To Know
Before contracting with a Debt consolidation service, there are some questions you need to ask before signing on the dotted line. First of all, if at all possible find a service which is non-profit. Ask how the service calculates the re-payment amount. Since you will not be in direct contact with your creditors, find-out how you will know they have actually been paid. Can you expect regular reports as to your account’s status? Will you be able to speak with the individual handling your account by phone at any time?
Any reputable Debt consolidation service will be happy to provide you with any and all information you request. It is very important to make sure the information you provide the service will be secure, not to be shared with any other service or agency. Ask if any information is reported to the Credit Bureaus, if any of your debts are excluded from the consolidation program. Although it is best to assume it will not occur, ask what would happen should you not be able to make one of your payments. Also inquire about any additional services available, financial planning, budgeting assistance, and any programs which would help you in managing your finances.