Stark differences exist among providers of debt consolidation plans.
The best companies achieve significant cuts in both monthly payments and costs while charging reasonable fees.
Participants enjoy faster financial recoveries and eliminate debts ahead of schedule.
However, actual results available from each company vary according to the quality of time expended on behalf of each client.
Due diligence is essential when comparing companies and offers to insure great results.
The most reputable companies always provide accurate cost and benefit estimates before requesting a fee.
In most cases, unsecured credit card balances comprise the bulk of liabilities included, yet plans may also consolidate revolving charge accounts, unsecured loans and other types of general unsecured debt.
Negotiating experience and industry expertise is required to achieve the best result for each type of debt.
Companies that negotiated thousands of similar accounts recently develop a keen awareness for the depth of discounts available.
These companies anticipate documentation required to conclude negotiations successfully.
The best companies welcome questions about a wide variety of individual lenders and type of liabilities.
Answers should be provided quickly and accurately.
Companies may impose a minimum total balance requirement for accepting new clients.
The total balance requirement varies depending on the type of service offered and company polices.
Do not waste time applying if credit card balances do not meet a particular company's requirement.
Everyone should request several free estimates before enrolling in a plan.
Estimates are available online without cost or fees of any kind.
Notice too how quickly each company responds, the depth of analysis provided, and the completeness of answers to common questions.
The amount of reduction in monthly payments is merely a starting point for evaluating free offers.
Just as importantly, notice the amount of time necessary to eliminate unsecured credit card balances.
Pay attention to total finance charges.
Late payment penalties are also common and vary widely according to individual plan policies.
After receiving several offers, inquire further with top prospects.
Prepare a list of identical questions for each company and compare answers when received.
Request copies of all contracts and written commitments required for enrollment.
Company reputations are important.
Consumer advocacy organizations, government regulators and trade organizations may provide in-depth reports.
Use a balanced approach when reading online reviews regarding each company's services.
After corresponding with several companies, compare both benefits and risks.
In addition, be aware that payments reductions are merely an estimate before enrollment.
Actual savings are determined after negotiating agreements with each lender.