Debt Consolidation Firm that Offers Low Interest Loans

Looking for a Debt Consolidation Firm that Offers Low Interest Loans

Most low interest loans for debt consolidation require collateral to approve the loan. In this event, you want to be careful as to what collateral is expected of you, since some loans may require home collateral. If you cannot repay the debt, then the lender will repossess your home and put you in the streets. However, if you have quality collateral, it might be in your best interest to take the gamble if it presents a sound way out of debt.

Most loans are attached to rates of interest. This means that you will pay the interest rates and the monthly installment toward the amount owed. The advantage of loans is that they present a way to get out of debt; therefore, you want to look for the loans that offer low interest rates and monthly repayments.

Are you Looking for a low interest loan for debt consolidation? If you have bad credit, you might feel your journey is hopeless. Debt consolidation loans are loans that help a person reduce his debt payments by combining all debts into one installment. The downside is sometimes the debt consolidation programs will cause your debts to go up $500 or more per month; and it will take longer to repay your debts since the programs will deduct fees and rates of interest.

How should you go about looking for a loan?

To get started, you want to avoid advertising tricks for loans, since most of the tricks are presented to lure in candidates who are less knowledgeable of loan procedures; thus, after the loan is approved, the rates of interest will be higher than average. Therefore, instead of going online searching for a loan, you might want to check with the local banks. If the banks cannot offer you a low interest rate loan for debt consolidation, then ask for referrals.

Network Information for Debt Relief Companies

The term “debt relief” is considered a paradox by many. Thanks to numerous fraudulent debt relief organizations, consumers end up suffering from worse debt problems rather than obtaining debt relief as promised.

The True Functions of a Debt Relief Company
Debt relief companies mainly provide help in reducing and even negating the amount of debt acquired by the consumer over the years. The company will be able to achieve this by negotiating for any of the following conditions: reducing interest rates, lowering the principal amount of debt, or compromising with a settlement. It may also help in disputing inaccurate or invalid charges, creating a budget, and developing good money-handling habits.

Is It Bad to Ask Help from a Debt Relief Company?
While there’s nothing illegal about asking help from a debt relief company, doing so might cause you to experience more problems than usual if you make the mistake of dealing with an illegitimate or fraudulent company.

Tips on Avoiding Fraudulent Debt Relief Companies
Be very wary when a company portrays itself as a “nonprofit” organization. Most of the time, it’s simply up to no good.
Ask for its business license number to confirm its legitimacy.
Inquire at the Better Business Bureau for any complaints filed against the company.

Several Samples of Debt Relief Companies
We’ve decided to feature a few debt relief companies to see how you fare on judging the quality of services and gauging the truth in the claims made by such organizations. Keep in mind that the companies described in this article, although truly existing, are used only as examples: we are neither for them nor against them.

Debt Relief Network, Inc. employs friendly and qualified professionals dedicated in helping consumers get rid of credit card debt. Besides offering consumers a free and confidential consultation, the company also provides the following services: a substantial decrease on the amount of total debt and its settlement, aid in managing creditors, and help in preventing bankruptcy.

Debt Relief Clearinghouse, on the other hand, simply assists in providing consumers with an ideally matched debt management professional for free. It hopes to attain the following objectives for its clients: increased awareness and understanding of its debt, increased use of cost-effective thinking and providing inspiration for its clients to become debt-free.

Debt Relief Pros aim for their customers to become debt-free without having to resort to filing of bankruptcy or joining Consumer Credit Council type programs. The company boasts of its results as 100% guaranteed.

Nonprofit Debt Relief Companies

You’re in for Disappointment If You’re Looking for Nonprofit Debt Relief Companies

In recent years, the Federal Trade Commission (FTC) has slapped fines on numerous fraudulent companies masquerading as nonprofit debt negotiation and debt relief organizations. The promises these companies make are tempting…but consumers who fall for it, hook, line, and sinker, are in for a disappointment.

Claims Made by “Nonprofit” Debt Relief Companies
Nonprofit Services – These organizations make a big show of helping you out of the goodness of their hearts.

Reduce Debt – No matter what type of debt you’ve incurred, these organizations are willing to promise they can reduce the amount of debt by a certain percentage (approximately 10 to 50%).

Better than Bankruptcy – Using frame psychology, these organizations give consumers the choice between do-or-die alternatives: work with them or risk bankruptcy.

No Impact on Credit Rating – Working with a nonprofit debt relief company will supposedly have zero impact at all on an individual’s consumer rating.

What They’ll Ask You to Do
In return, these companies will ask you to pay a specific amount of fee for periodic intervals. For that fee, you can ignore your bills and stop paying your creditors. For that fee, you’ll let them do all the worrying.

The Truth about Nonprofit Debt Relief Companies
Take a step back and ponder carefully on the claims made by these companies. Do they ring true? Do they sound too good to be true? If so, they probably are. These companies might be nonprofit on paper but that doesn’t mean they’re not earning from their clients. They can just as easily overstate their operating expenses to make their balance sheets reflect illusionary break-even margins.

An Example of a Fraudulent Nonprofit Debt Relief Company
Early in 2005, the FTC had filed a complaint against the National Consumer Council, a front group of debt relief and negotiation companies, for deceiving almost 45,000 customers seeking instant freedom from debt. Under the NCC umbrella were other companies with nice-sounding names like London Financial Group and Financial Rescue Services. Falsely claiming that all their clients’ debt problems would be solved simply by depositing money into their accounts and getting their services aggravated the debt situation of their clients instead.

Are There Truly Legitimate Nonprofit Debt Relief Companies?
Yes, although they’re very rare. The best way to personally determine whether a debt relief company’s for real or not is to ask for information from the Better Business Bureau and other similar institutions. They’ll be able to tell you if there are already consumer complaints filed against the debt relief company you plan to transact with.