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Does Free Debt Consolidation Exist

You see all of the ads, and you wonder if it can really be true, is there really a free debt consolidation loan? The answer to that is obvious - there isn’t. Certainly, it might be free in the respect that you don’t have to pay any money up front, but it’s not free after that.

Different companies work it different ways, and you have to make sure you know right up front what is going to happen. Having a relative who used to work for a bank, you can be sure that some of these companies take the first two to three months’ payments in return for their services. This means that your creditors may get nothing for the first two to three months after you sign up for debt management services. Other companies charge a percentage of the monthly payment or a certain dollar amount per month to service your account.

Can you be sure how your money is going to be distributed? The safest method of all is to get it in writing. The contract you sign to accept their services should tell you how the money is distributed to your creditors, how much they will take as a fee, and when the payments will start being distributed to the creditor. If that is not defined in the contract, don’t sign it until it is.

Debt consolidation, like anything else, costs money, and anyone who tells you they can do it free is not giving you all of the facts. The problem with us as part of the human race is that we like to believe there are things that are “free,” when in reality, it means “free with conditions.” Unless you are dealing with a non-profit agency, the company has to make money, and they certainly aren’t going to ask the creditor to pay for their services, so who else is it going to be? Did you really believe that you were going to get something for nothing? Everyone has to pay bills, and in order to do that they have to make money. It’s not realistic to think that someone is going to work out a program with your creditors and not expect anything in return.

The best thing is to find the company that is going to charge the least amount for the services, and not the one who wants to hold two or three payments before sending the money to the creditor. You want to find a company who takes a percentage or a flat fee, but is willing to send each payment in a timely manner. After all, the creditor will probably cancel your program if you default on the payments, and though it won’t be your fault, the consequences will be the same. Save yourself the stress and research several companies first and choose the one who is going to charge you the least for the service and will provide the highest quality of service. You can do this by first checking them through the Better Business Bureau, and then review their fee schedule if they have no complaints filed against them.

Darnell is a writer for several websites. For more information on free debt consolidation visit our online debt consolidation blog.

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Online Debt Consolidation

There are a number of online debt consolidation resources, ranging from free advice to debt consolidation company websites where you can research and immediately sign up for services.

A major benefit of online debt consolidation information is that you can save yourself a great deal of time, and possibly money, by educating yourself before making a decision. You can use the internet to research the debt consolidation companies and services you are considering. You can bookmark the websites of companies you think are worth checking out, and then check them out as thoroughly as possible through more than one channel. You can also visit the Federal Trade Commission website and other US government websites for useful information on debt reduction.

While many companies with websites are reputable, it is always better to check with your local Better Business Bureau before giving your business to a particular debt consolidation company. It is also better to take companies up on offers of a free initial credit consultation, preferably in person. This will give you the opportunity to gauge firsthand whether you are receiving thoughtful advice, or being rushed into agreeing into a debt management program just so the company can get your business. You should take the time to read the fine print in any contract you sign with a debt consolidation company.

As with any online website where you are asked for personal information, always verify the antecedents of a debt management company before providing such information. There are regular reports of identity theft and other scams perpetrated under the guise of debt consolidation services. Since your aim is to get out of, and not further into, debt, it is well worth your while to take the extra time to verify you are dealing with a reputable company.

Debt Consolidation Solutions provides detailed information about debt consolidation solutions, online debt consolidation, free debt consolidation, debt consolidation services and more. Debt Consolidation Solutions is the sister site of Bad Credit Debt Consolidation Loans.

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Free Debt Consolidation

A number of debt consolidation companies offer free services to attract potential clients. These services may include credit counseling, drawing up an individualized debt management plan, information on how to avoid bankruptcy, or other advice on debt reduction options. Some companies may waive fees for certain services. However, the bulk of free debt consolidation options are provided by the United States government or are available to certain qualified individuals under law.

The United States government provides a variety of free advice for certain types of debt, including student and home loans. The Federal Student Aid website tells you under what circumstances you may be eligible to have your student loan cancelled. It also provides information on deferment options. The Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) provide information on home equity loans and other home refinancing options while also educating clients about predatory lending practices and how to avoid them. The Federal Trade Commission provides free information on how to get your free credit reports, legal ways to improve your credit report, self-help tips on managing debt, and how to recognize and avoid credit-related scams.

If you are on active military duty, there are certain circumstances under which you are protected from incurring additional debt on financial obligations that were incurred prior to being deployed. This is under the Service Members’ Civil Relief Act of 2003. Reserve, Coast Guard, Public Health Service, and National Oceanic and Atmospheric Administration members are also covered under this Act. While you need to demonstrate that being on active duty will adversely affect your ability to service your debt, you can request creditors to reduce interest, be protected from eviction if your monthly rent is $2,465 or less, be released from a home or vehicle lease, and delay bankruptcy or foreclosure proceedings.

Debt Consolidation Solutions provides detailed information about debt consolidation solutions, online debt consolidation, free debt consolidation, debt consolidation services and more. Debt Consolidation Solutions is the sister site of Bad Credit Debt Consolidation Loans.

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