Top Debt Consolidation Companies

If you are facing a personal financial crisis and looking for ways to keep your head above water, debt consolidation could be one of your options. Many credit counselors or debt management companies offer debt consolidation, but what exactly is it? Debt consolidation is when you combine your debt so that you are making one payment instead of several. The advantages are that you can often lower your monthly payments, and thereby hopefully prevent any further damage to your credit and get your finances back on track. Unfortunately, this industry has its share of scam artists and bad debt management companies, so how do you go about finding one of the top debt consolidation companies to help you out of debt?

What Makes a Top Credit Consolidation Company?

A top credit consolidation company will have well-trained and certified counselors that will help you regardless of age, religion, race, etc. The company should be a non-profit organization that does not force clients to pay high fees up-front or make large “donations” to their company. A good credit consolidation company will take time to fully review your financial situation, try to help you figure out where you went astray, and teach you how to avoid making the same mistakes in the future. Reputable counselors who are knowledgeable in the areas of consumer credit, debt and money management work with you to develop a debt management plan which you can reasonably afford to reduce your debt and get you back on track financially.

What is Their Better Business Bureau Rating?

Another place to look when trying to find a good credit consolidation company is the Better Business Bureau. The Better Business Bureau (BBB) evaluates and rates businesses based on several factors. They investigate how long the company has been in this industry, if there are any problems with the company’s advertising, the number of complaints filed against the business and whether and how the complaints have been resolved.

What is Posted on The Internet Complaint Boards?

It is also helpful to search on the Internet to see if there are many, if any, complaints posted on any boards about the company that you plan use. While the Internet complaint boards are not official sites, and an objective third party has not investigated the complaints posted, it can give you an idea of what the company does or does not do for its customers.

Other Organizations to Check

Two organizations that can aid your search are the National Foundation for Credit Counseling (NFCC) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA). These two organizations have created an industry standard of professional conduct for credit management companies. They both require the credit management companies to adhere to their strict standards and requirements in order to be granted membership. Their standards include such things as the agency must be non-profit, and meet all licensing, registration, bonding, statutory requirements required by the state that they operate in, must be accredited by the Council of Accreditation (COA), must be properly educated and trained, and must be available to customers without discrimination. Both organizations have listings of their members in each state.

Finally, if you are able to get a credit consolidation loan that will help you lower your monthly payments; it is important not to forget what brought you to this point in the first place and avoid spending more money now that you have a little breathing room. With a little help from a top debt consolidation company, you can get your finances back in order and finally breathe a little easier again.