Free debt consolidation sounds really good, right? Especially, when you’re already in a financial jam, I mean who wants to put more money out to solve a money problem if they can have it solved for free. Many of the companies and organizations that advertise themselves as being free, know that people really think and feel that way, and use the word FREE to play on their desperation and need for help. Many times when you get to their website or call them, you find out that they are offering a FREE consultation, and not free debt consolidation services. Free debt consolidation service does exist, but it is truly a rare thing.
The handful of free debt consolidation companies and organizations that do offer completely free services to their clients are subsidized by the credit card companies themselves. If you didn’t catch that, the credit card companies pay for the services rendered to the client, but don’t worry they can afford it. This type of debt consolidation has nothing to do with taking out a new loan to consolidate your overall debt. Rather this approach to debt consolidation has more to do with debt management and debt settlement.
Off hand, I don’t know of any financial institution that will make you a consolidation loan for free. In other words, if they make you a loan, they expect to be paid back with interest. If you are looking for a free debt consolidation loan, you may have to borrow from someone in your family or a close friend. Friends and family usually don’t charge interest on loans, but there is a whole different set of risks involved.
Most debt consolidation companies and organizations actually charge for their services. A good majority of them do offer a free consultation, but that’s about as far as it goes and that’s mainly to talk you into using their service. They usually charge a set up fee and a monthly maintenance fee to handle your account. For more information on what they do, follow these links: credit card debt consolidation service or debt consolidation non profit.
Unfortunately, there are some bad eggs out there, especially online; they offer you FREE services to entice you so they can scam you. So, if you are looking for free debt consolidation, make sure that whom ever you are dealing with truly is offering their services for free, and that they are a legitimate debt consolidation company or organization. Please keep that in mind.
Free Debt Consolidation - Is There Such A Thing?
Posted by DL | 3:25 PM | credit card debt consolidation service, debt consolidation non profit, Free debt consolidation | 4 comments »
Subscribe to:
Post Comments (Atom)
There are commercials and advertisements about credit card debt relief being flashed on TV or in the newspaper all the time. It is always wise to be cautious about committing to anything that is heavily advertised without knowing exactly what you are getting yourself into. In fact, the Federal Trade Commission even warns people against getting pulled into those adverts from credit card debt consolidation companies Many times, when trying to sort out your credit card debt, you end up with bad credit anyway; those companies that promised to help you may have ended up hindering you.
Excellent point George, people under the pressure of debt sometimes don’t think things through and jump at the first opportunity for relief from debt that sounds like a quick fix. The scam predators know this and they know how to use it to their advantage. The saying, "If it sounds to good to be true, it probably isn’t true" definitely applies here.
Remember, when shopping around for debt relief help proceed with caution.
Yeah!! I am very much positive as u said.!!Free debt consolidation sounds really good, at all. Especially, when you’re already in a financial jam, the word FREE to play on their desperation and need for help.
Its true that my father also don't like me to have Credit cards or any types of Loans.
I had several Cards and payday loan debts earlier and it was a headache for me, certainly i went for Debt Consolidation Loans services from a reputed law firm. Now I have no debts to pay.
Hey...love the blog. Lots of great info.
I got into an argument with a friend the other day about whether debt consolidation or debt settlement is a better way to go -- and he had some good point that I was not really able to counter.
He gave me this site as a reference for debt settlement: debt settlement company.
I am now both confused about the differences between the two, and which one is better. I am assuming you will tell me that debt consolidation is better. But most importantly, why?