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Debt Consolidators: Worth Your Time?

By: Michael Millington

When multiple debts get out of hand, what was once easy to pay can become a hassle. While debt consolidation isn’t for everyone, it can definitely help to organize your debt if you can pay for it. However, there are two ways to consolidate your debt. You can get a consolidation loan from a bank or other lender. This is the most common use of the consolidation concept. The other method is to use companies known as debt consolidators. Here we will discuss how debt consolidators work and if you should use them.

What Do Debt Consolidators Do?

While they bear the name “debt consolidators”, they do not serve the same purpose as debt settlement providers. Debt consolidation is often used interchangeably with debt settlement because of their closely similar definitions. Consolidators offer to do the same thing as debt settlement companies: make your debt manageable. Consolidators help to negotiate better rates on your debts for you. You would then make payments to your debt consolidator in order to have them settle your debt.

Should You Use Debt Consolidators?

Debt consolidators follow many of the same traits as debt settlement companies. There are a few differences to the two forms of debt relief. Consolidators generally involve credit repair services in their offerings. This can be a tricky thing to deal with in terms of payment. There are laws in place against the wrongful utilization of fees from debt consolidators to protect you. This doesn’t mean every debt consolidator will follow suit, so be careful.

Whether you deal with debt consolidators or debt settlement companies, do your homework. Know what you’re dealing with before you commit. A reputable debt relief company will provide you with the answers to whatever questions you may have. Be wary of any upfront fees you’re faced with paying. The right companies will usher you out of debt in short order.