If you have accumulated huge debt and are unable to manage them, then you can seek professional help. You can take the help of debt consolidation companies to get out of debt.
Professionals will deal with your case. They will negotiate better rates with your creditors.
In consolidation, you combine your multiple bills into one single monthly payment. Thus, you wouldn’t have to worry about paying multiple bills every month.
If you enroll in a debt consolidation service, the experts from that company will negotiate with your creditors on your behalf.
But you should select the right debt consolidation company when you’re serious about getting out of debt. Scam debt relief companies simply misguide consumers and reap profits.
Thus, you should consider a few things when you want to know which debt consolidation company is the best.
Here you go:
1. Check your rating with the Better Business Bureau
The company you choose should be a well-known one with experience in providing debt relief solutions. Make sure the company is accredited by the Better Business Bureau (BBB). You can check the company’s track record with the help of the Better Business Bureau. You can also check if there were any complaints lodged against them.
The company shouldn’t have many disputes against them. A good consolidation company can negotiate with your creditors in a better way. You need to provide some of your personal information to this company. So, it is important to know whether or not the company is reliable. Make sure that your personal information is in safe hands.
2. Find out if the company offers debt counseling services
A reputed debt relief company offers debt counseling to provide financial advice to the debtor. The debt counselor guides you on how you can avoid debts in the future. Make sure the company you are selecting provides this facility.
3. Check if the company is accredited by NFCC
NFCC (National Foundation for Credit Counseling) provides correct information about debt relief service providing companies. It is a nonprofit organization with a listing of counselors from all over the nation specializing in debt relief services.
4. Make sure the company does not offer quick solutions
Stay away from a company that claims for a quick debt solution. Remember, there is no easy and quick solution to your debt problems. What a debt consolidation company can do is make the process of repayment simpler. They can’t erase your debt magically.
5. Read the consumer review of the company
Before selecting a consolidation company, read the online reviews. Many consumers write their experience regarding the debt consolidation service they took. If you read many negative reviews, then it is not the right debt consolidation company for you.
6. Check if the company is state-licensed
You should check if the company you are selecting is state-licensed. As per some state rules, debt counselors should hold a license to provide advice to consumers.
You should check whether or not your state follows the same rule. Contact your state’s attorney general to find out whether or not the counselor and debt consolidation agency is licensed.
7. Compare the fees
You should inquire about their fees thoroughly. Authentic debt relief companies shouldn’t charge hefty fees. Also, a good debt consolidation company provides free debt counseling services.
They may have a set-up charge, which is relatively low ($0-$75).
8. Make sure the representatives are proactive
Make sure the representatives of the company are happy to answer your doubts. If they don’t show their interest in solving your problems, then avoid the company.
Experienced professionals can give you the best solution instead of the agents who simply work for a commission. In fact, the consolidation company should be happy to answer all your questions.
9. Ask your relatives or friends
Ask for referrals from your friends/family members who have worked with a debt consolidation company in the past. A real review is great for choosing an authenticated debt relief company.
Lastly, be wary of fakes, no BBB profiles, and no authentic website debt consolidation company. You may receive numerous calls regarding debt consolidation services. Before saying “yes” to their service, check all the criteria mentioned here to avoid the scam debt consolidation company.
Remember, ignoring debts can trigger the problem more. If you are facing problems with paying off your multiple bills/debts, then don’t ignore the crisis. You should take the right action to get out of debt as soon as possible. So, if multiple debts or bills are your concern, then consolidation can be the right option. Go for it.
Here’s how debt consolidation can help you pay off medical debts
- It helps to lower the interest rates on your medical bills
The interest rates on your medical bills remain relatively high. You can lower the interest rate by consolidating it. You can consolidate medical debts by enrolling in a debt consolidation program. After enrolling in a consolidation program, a debt consultant will negotiate with the hospital authority or debt collectors to lower the interest rates on your medical bills and hospital bills.
- It helps to consolidate payments into a single monthly payment
The debt consolidation process can release you from the hassle of making multiple bill payments to multiple hospitals. For debt consolidation, your monthly bills will be consolidated into a single monthly payment.
If you opt for a debt consolidation program, the debt consultant, who is working on your behalf, will ask you to make a single monthly payment to the consolidation company. When you opt for a consolidation program, you just have to make a single monthly payment to the consolidation company; the company makes payments to the respective hospitals.
- You will get debt counseling for free
If you enroll in a reputed debt consolidation company, they will provide you with a free counseling session. The debt counselor will assess your income and expenses to help you manage your finances in a better way. They will also give you budgeting tips and savings tips so that you can recover from the financial mess.
- You can save money while making monthly debt payments
The interest rates on your medical bills will be reduced. You need to make lower monthly payments. It helps to set aside some money every month.
- Helps you live stress-free
Using credit cards for paying medical bills is not the solution. You have to repay your credit card bills in full and within time. Ignoring medical bills is also not good. A debt collection call will make your life stressful. If you feel you can’t manage your medical bills, consider debt consolidation.
Once you have started making payments toward your debts, you will feel stress-free. Soon you will enjoy a debt-free life.
A few tips to consider to avoid medical debt in the future
- Make sure you check the medical invoices thoroughly
Many hospitals overcharge for services and medications. Sometimes, they add the medicine or service bill that you never asked for. You should check your medical invoice properly for accuracy. This will help you avoid unnecessary bills.
- Repay your credit card bills if you use it for paying the medical bill
Remember, credit cards are not free; you have to repay the bill in full. If you had faced a medical emergency and you had to use your credit card, then you should repay the bill on time. Otherwise, you will fall into credit card debt soon.
- Recognize the gap in your insurance coverage
If your insurance coverage is not for all diseases or services, then you have to remember it properly. Some people think they were covered for the service they availed but they weren’t covered by their medical insurance. After some time, they receive notice from the hospital or collection agency. So, read your insurance terms and conditions properly. Try to get maximum coverage to stay safe.
- Ask for a repayment plan
Usually, hospitals or doctor’s offices don’t charge a hefty interest rate on medical bills. You can talk to the hospital authority for a repayment plan that suits your budget. You can also discuss your financial hardship to reduce the total debt amount.