Debt Consolidation Quote: Is It Right For You?

So many people are currently drowning in debt and considering using a debt consolidation service that they need to understand how to get and evaluate a debt consolidation quote. Consolidation information can be obtained from the internet, from a consolidation company, or from printed materials.

Step one to getting a debt consolidation quote is to put together info about the debts, including who each creditor is and how much is owed as well as the status of the account. Other obligations, such as monthly housing and utility payments are needed as are a list of all your assets and sources of income. It is advisable to make a complete budget.

After gathering all of the data, the individual should find consolidation companies. Going online is an easy, quick way to accomplish this task. Many places will not charge for an initial debt consolidation quote, requiring only that you provide them with the necessary data in a paper or electronic form.

Choose companies that have good track records, checking with the BBB and the internet equivalents, and look for user reviews whenever possible. You may prefer a nonprofit consolidator but be aware that just claiming to be nonprofit does not prove reliability or efficiency. Another option is using a legal firm that does this kind of work.

After you put in the information for your debt consolidation quote, compare the results with a few other companies and see if what you get from those companies is realistic and comparable. You’ll want to check into the reputation of the companies who have the best offers. Usually you will find is pretty easy to make a decision on which is the better company.

You will also want to seek firms that offer ongoing support beyond just collecting your monthly check. Look for those that also provide budgeting training and assistance. Some companies are even affiliated with religious groups and add spiritual support to the other services offered. If this is meaningful to you, these firms may be your best choice.

You will want to know the pros and cons of any consolidation loan and precisely what the quote includes. Taking a mortgage loan to clear credit card debt means conversion from unsecured to secured borrowing. While that may lower your rates, it also means that you face the possibility of losing your home if you cannot pay on schedule. Consult your bank for financial advice before making your decision.

Obtaining a debt consolidation quote is a step in the right direction for anyone searching for a debt solution. Before acquiring a quote, an individual should organize up to date information about all of their accounts and begin researching debt consolidation information and companies online. Most companies offer a preliminary evaluation through their website, as well as customer reviews and testimonials about their service. Through diligent research, an individual can find a company that will not only provide a debt management plan, but also offer education, training and assistance in managing your finances.

- Bruno Auger

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