Debt Consolidation After the Great Recession

debt consolidation

As Americans continue to move out of the Great Recession, they begin to look for ways to consolidate and get rid of the debt that was incurred during that time. As debt consolidation companies continue to grow and advertise more, consumers are bombarded with images and messages telling them to consolidate their debt. Recently, a study has been released naming the best debt consolidation companies in the country.

Deciding to consolidate debt is a major decision for a person. While some may look at debt consolidation as zeroing out balances, it is important to realize that consolidating debt is only moving it from one place to another. A person who consolidates debt is still on the hook for all that they owe, they just pay to one place, with the possibility of a lower interest rate. As this debt moves, a consumer may not be sure what they owe to whom. When consolidating debt, it becomes important to keep track of what exactly is owed where. Consumer Reports notes that when one company buys debt from another they could be buying debts that have already been paid. This is why it is important for a consumer to keep their debts straight.

The website Top Ten Reviews lists National Debt Relief as their number one debt consolidation company in America, a decision corroborated by another study conducted by the site Best Debt Consolidation Loans. The studies make note of National Debt Relief’s customer outreach services, including a calculator, budget planning, and professional advisors. Other services to make the list are Debtwave Credit Counseling, Premier Debt Help, and InCharge Debt Solutions.

Beyond the listing of debt consolidation services, the reviews also work to make clear the kinds of business practices consumers should avoid while working to consolidate debt. An important factor for consumers to know is that since 2010, upfront payments for debt consolidation are illegal. While there may be monthly charges associated with using these companies, a consumer should pay no money at the beginning of the process. Another factor to look out for is credit counseling. Though people may work to get existing debt under control, they may have no plans for changing their habits concerning credit use. A company with credit counseling can keep a consumer from making the same mistakes that they have made in the past.

National Debt Relief is seen as the best of these services for a number of reasons. Their standing with Better Business Bureaus is extremely good. They do not charge their customers until their consolidation plan has been approved. Not only do they work on debt problems, they will also work to improve their customer’s credit scores. These are the type of services that American’s are looking for as they move out of the tough financial situation of the last few years.

With more and more Americans looking to get out of debt following the Great Recession, the debt consolidation industry is bigger than ever. With the growth of the industry, it is more important than ever for consumers to be aware of the choices in front of them when deciding to consolidate their debt.

By Bryan Levy

Sources:
Fox Business
Consumer Reports
Top Ten Reviews
Digital Journal

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