The latest economic nosedive has made bill consolidation into a kind of trend for American consumers. This increased demand for bill consolidation, most commonly known as debt consolidation, has opened the door for more bill consolidation companies and services - and increased competition. To make one company more appealing over another, companies have begun offering “free” bill consolidation services.
For consumers in a real bind, free bill consolidation can be just the break they need to finally break out of their debts - but is it truly free? Every business has to make a profit - how can these companies still profit without charging the consumers any fees? Although free bill consolidation can sound like a fishy deal, too good to be true, or riddled with red flags, the truth is it could make your quest for financial freedom possible. Nevertheless, it is always worthwhile to check with the Better Business Bureau to make sure you’re dealing with a reputable agency.
How Companies Profit With Free Bill Consolidation
Most bill consolidation companies have three rounds of fees for their clients. Most commonly they charge you to open an account and evaluate your situation, then to send letters and correspond with your creditors, and a final fee when they meet to negotiate the loan structure. With so called free bill consolidation, the company negotiates down your debt while collecting the full amount from you.
The difference between what the company manages to negotiate and your payments, along with a few other techniques commonly used to increase their profit margins, account for the service fees. You may think you’re getting scammed because although you’re not being charged additional money for the services, you’re still not benefiting from the debt negotiations. However, it isn’t likely you would be able to negotiate with your creditors on your own to get your debt lowered.
Video: Consider Loan or Debt Consolidation
Free Bill Consolidation is a Win-Win
Your creditors are willing to drop some of the debt for the bill consolidation company because it is a third party. You probably haven’t been the best customer - otherwise you wouldn’t be in this situation - so it isn’t in your creditors’ best interest to decrease your debt if you call them up out of the blue. Working with a third party takes the responsibility off of your creditor to collect the debt, and often the bill consolidation company guarantees debt repayment in exchange for the decrease, sometimes even repaying the debt in full right then and there. They may also take out a loan to further increase their profit margin and free capital to repay your creditors, perhaps in your name, perhaps not - it all depends on your arrangement with the company. In the end, you only have no more harassing phone calls and only one low monthly payment, and maybe even a few additional bonus points added to your credit score. With free bill consolidation you have nothing to lose and everything to gain - so call our toll free number or fill out the form to get a grip on your financial freedom today.
Video: Knowing Your Credit Rights Will Help You Get Out of Debt
List of non-profit debt consolidation agencies:
Consumer Credit Counseling Service Of Los Angeles
National Budget Planners Of South Florida
Family Debt Arbitration
Commonwealth Catholic Charities
Ifmc Down Payment Asstnc
Blue Haven Capital LLC
S C Ministry Foundation
IA Global Inc
Mass Housing Investment Corporation