Consolidated loans- Is it for you?

It is hard to be indebted to many companies and institutions where you have to prepare multiple payments if you can pay at all. Just when you just finished paying your monthly obligation on your mortgaged another one is looming again above your head. Multiple companies mean different people will call you, different people will knock at your door, and many people will try and get the money from you. Now it’s fine having multiple loans if you earn big and can pay them when you need to. But if you don’t and you have delinquencies, then maybe you need another loan.

I’m talking about consolidating your loans.

Consolidating means that all your debts are transferred to one company that offer a much lower interest and easier payment option. You end up with one debt, one collector and one thing to think about. There are many companies out there that willing to help you out and hopefully give you the peace you always wanted. But take heed for as simple as it sounds, the tricky part is in its simplicity. Consolidating loans needs collateral especially on the case of home equities where many lost their homes instead and so much more.

Before you get a consolidated loan you have to at least find a way to fix your current situation. Consider prioritizing your income and update your payment. Talk to your creditors and see if they can give you more time straighten things up. If things won’t work out the way you are hoping it would be then maybe it’s time for a consolidated loan.

The first thing you need to do is to find that one company that you will trust with your finances and future. Take these 3 easy steps to help you find the right one.

1.    Create a list.

Search your local paper or online for debt consolidation or debt relief companies. Make sure that read feedbacks and testimonials about the reputation of the company and narrow it down to only the best with shining feedbacks.

2.    Call and set up an appointment.

Call and ask for a representative that could answer your questions about its programs. Find a company that is a non-profit organization that is legit and licensed to operate in your state of residence.

A good company will examine your financial history and see if there is another way for you to fix your situation. Others may even call your creditors and see if they can lower your interest before they decide to enrol you in the program.

Ask about the fees and charges they are entails. It is best to set an appointment with a non-profit organization as they are required by law to give free counselling and education.

3.    Check even further.

If you have narrowed your search the one that offers you the best deal then search even deeper about the legitimacy of the establishment. Check their status at Better Business Bureau and call your local State Attorney and see if they have pending cases against other companies you are involved with.

When you came to a point where you are handed a contract, make sure that you read from start to finish including the fine print. You’ll never know that there might be something in the contract that you forgot to ask and the company forgot the tell you.