As American household debt reaches a record high of $13.21 trillion, more people are finding themselves under seemingly insurmountable financial circumstances.
Americans now die with nearly $62,000 in debt to their name according to a recent report by Experian credit bureau.
To these people, it can seem impossible to find a viable financial remedy.
That’s where debt consolidation can help. By merging high-interest bearing debts into a single lower monthly payment, individuals can payoff financial obligations using a more cost effective strategy.
Determining the reputability of debt consolidation companies can be challenging.
Aside from Better Business Bureau (BBB) accreditation, there are other methods in determining the legitimacy of a debt consolidation company. Consumers should practice due diligence to ensure they are working alongside established, trustworthy businesses.
Ways You Can Determine the Legitimacy of Debt Consolidation Companies
People may feel inundated by limitless debt consolidation options available. Adequately researching all viable options is important prior to settling on a solution.
Read Consumer Reviews
As with any other business, be sure to seek and compare several options instead of using the first company you find. Consumer reviews are a tremendous resource when it comes to validating the effectiveness and reliability of businesses.
Be sure to check reviews on a number of sites such as Google, the Better Business Bureau, and Trustpilot. Strong ratings mean these businesses have been vetted by real-life consumers who have successfully used these companies to manage their debt.
Poor reviews and prolific negative feedback means individuals have had limited success when it comes to resolving their financial difficulties.
Look for Established Businesses
A company with a track record of success and positive past performance over many years means they have sustained a culture that is conducive to customer loyalty and success.
Companies with a valid physical address and a strong online presence indicates a strong reputation amongst users. A lack of contact information, consumer reviews, and physical address may highlight red flags of illegitimacy.
Company obscurity indicates the business is brand new or may be hiding a negative reputation. There are a number of warning signs to be aware of when it comes to dealing with debt consolidation companies.
Behavior Warning Signs
Consumers who’ve found a debt consolidation company should proceed with caution before making a final decision. Be sure to look for any of the following warning signs.
Asking for Upfront Payments
In 2010, the Federal Trade Commission (FTC) created regulations prohibiting payment of up front fees. As such, a legitimate debt relief company will not ask for money prior to engaging in debt relief services.
Overly Pushy Tactics
Debt consolidation is a difficult problem to solve overnight. Be aware of companies using particularly pushy tactics. Smart consumers will consult with several debt consolidation companies offering both personal loans and debt settlement prior to making a final decision.
Company Lacks Transparency
Companies should provide a clear picture as to how they handle debt consolidation and dealings with creditors. If their methodology cannot be articulated to customers, this is a distinct sign to consider alternative options.
Some companies offer assurances that are too good to be true. Offers of complete debt forgiveness or settling for pennies on the dollar are likely empty promises.
If you notice any of the red flags mentioned above, proceed with caution and be sure to consult with additional companies.
Choosing the right debt consolidation company is vital to repairing your credit and obtaining your financial freedom.
Debthunch is the solution for all your debt consolidation needs. They have a track record of success unmatched by competitors with a 4.8 star Google review amongst nearly 150 reviews and hold an “excellent” rating with Trustpilot.
As a family owned business with over 16 years operating at the highest level of consumer finance, Debthunch comes backed by an A+ rating from the Better Business Bureau (BBB). They were also recently named to the prestigious Inc. 5000 list of fastest growing privately held companies.
Debthunch instantly processes your application and provides the best debt consolidation solution in minutes. Stop making minimum monthly payments that never go down.
Let Debthunch help guide you towards financial freedom today.