The Best Debt Consolidation Company?

Use This Checklist To Find It

There's no doubt that choosing the best debt consolidation company to help you with your debt problems is an important process. After all, most debt consolidation programs (also called debt management plans) will last four to five years. That's a long time to be associated with one company, and the last thing you want is to realize 12 months into your debt relief program that you hitched your wagon to the wrong horse.

Now, keeping in mind that your debt situation is unique (as are you), there is no single "best debt consolidation company" that will suit everyone. No "one size fits all" if you will. Having said that, here is a checklist that you can follow, to at least help you narrow down your choices when it comes to debt consolidation companies.

Sidebar: Before we get to the checklist, I should point out one very important point. The type of debt consolidation that we are discussing here is NOT a debt loan. And most "debt consolidation" companies that you see advertising are offering debt management programs, not loans. It's important to be aware of this.

OK, on to the checklist...

When Nothing But The Best Debt Consolidation Company Will Do

Follow this debt help checklist to find the debt relief you need:

Is Debt Consolidation Even Your Best Option?

When people start looking for advice on a specific debt relief program, whether it be bankruptcy, debt settlement, a debt consolidation loan or credit counseling, I tell them the same thing...

Make sure you consider all of your options before you jump in.

You do have options. And sometimes it requires the help of a debt professional to thoroughly examine your financial/debt situation and point you towards those options that best suit you. Who knows, the best solution for you may not be the one that you were considering in the first place. Which leads to my next point...

Does The Company Offer More Than Just Debt Consolidation?

If they only offer debt consolidation, and your situation lends itself more to another solution, are they going to send you elsewhere (which they should) or try and sell you on a debt management plan that is clearly not in your best interests?  I encourage you to make sure you choose a company that offers a variety of solutions so that you can feel confident that their advice is unbiased and that you end up on the right path.

In my opinion, the best debt consolidation company is one that offers the entire gamut of debt solutions from free credit counseling right through to Chapter 7 bankruptcy filing. That way you can be assured that you will be provided with the best solution to suit your needs. Such a company will start you out with a free debt savings assessment and, if appropriate, provide you with an individually tailored debt consolidation program. Any initial advice should come completely "commitment free" on your part. And if your situation warrants more "extreme" measures, the next step (with your permission), would be to pass your file on to a law firm that does nothing but help people who are struggling with their debts. Typically the law firm will have representation across all 50 states and provide both debt settlement and bankruptcy services.

Do They Offer A Free And Thorough Upfront Assessment Of Your Financial Situation?

And along with that assessment, do they offer a detailed budget, regardless of whether you intend on entering their debt consolidation program or have the ability to pay for that program? This is an important one. For some folks, credit counseling, along with a clear budget and money management education, is all they need to "right their debt ship" so to speak. The best debt consolidation companies realize and respect this, and will not recommend a debt consolidation program to someone that does not need it.

Does The Company Have A Track Record Of Success?

How long have they been in business? How many people have they helped? Although these things don't guarantee that the company is legitimate or one of the "best", the ones that hide these facts have to make you wonder why they do.

Does The Company Have A Solid BBB Rating Of "A" Or Higher?

And do they post a link on their homepage that goes right to their BBB ratings page? The debt business is rife with companies and people that are out to make a fast buck at your expense. And they usually leave a trail of unhappy customers in their wake. A solid BBB rating (I recommend "A" or better) will let you know whether the company has a clean track record.

A telltale sign of the best debt consolidation company is a customer list in the millions and an "A+" BBB rating. This tells you that their practices are consistently excellent over the long run.

The company I recommended above has helped over 4.5 million people in debt, and has earned an "A+" BBB rating to boot.

Does The Company Offer Testimonials From Past Clients?

Again, this is no guarantee that they are reliable, but it is one more positive "check" for the good companies.

Are The Fees They Charge Reasonable?

How do you know what a "reasonable" debt consolidation fee is? My recommendation here is to shop around and get a feel for what different companies charge for what they offer. Speak to 3 to 5 companies. Find out what they offer, what their fees are and exactly how they charge those fees. You don't want any surprises coming your way after you begin your debt relief program. On that same note however, you don't want to sign up with the cheapest company simply because they are the cheapest. Use your common sense here.

Is The Company A HUD Certified Housing Counseling Agency?

Often times the best debt consolidation company will offer services beyond even the typical debt relief programs that we have discussed above. One such service that many people find very useful is housing counseling. If you are struggling with consumer debts, there is a good chance that you are struggling with your mortgage (if you own a home) as well. A HUD certified counselor can help you in this area of your finances.

Does The Company Already Have Relationships With Most Creditors?

There is a good chance that most of the top agencies have relationships with all of your unsecured creditors. (One particular one has relationships with over 220,000 creditors.) This allows them to quickly estimate the potential savings you may experience through a debt management program, based on their past experiences with your creditors. Their prior relationship with your creditors also allows them to negotiate the best interest rate reductions and increase the chances of eliminating any late fees and penalties on your accounts.

Is The Company A Member Of Any Trade Associations?

Licensed debt consolidation companies employing certified credit counselors typically will belong to one or more associations. One such associations is the AADMO or American Association Of Debt Management Organizations which is the largest such association. What associations does the company you are considering belong to?

And last but not least (and maybe most importantly)...

Do You Feel Comfortable With The Thought Of Dealing With Them Over The Long Run?

Sometimes we just have to make decisions in life based on our "gut feel". Remember, whichever debt consolidation company you choose, there is a good chance that you will be working with them for around 5 years. (Most debt consolidation programs are designed to get you out of debt in about 60 months, if everything goes as planned. If it happens faster, great. But to be on the safe side, I would expect a 5 year plan.) The "best debt consolidation company for you" is probably the one that you feel most comfortable with from both a professional and ethical level.

Following this checklist will certainly enhance your chances of not only finding the best debt consolidation company, but finding the best debt consolidation company for you.