Even though debt consolidation can save your finances and your relationships, you should still be aware that it is becoming more and more popular. Planning your finances is always important for a healthy bank account, but watch out for what some of these companies offer. Many have advertised all over the Internet and TV, but some of them are now being sued by different attorney generals, the IRS, and even the FTC. Because they are not really non-profits, they are being sued.
One of the worst debt consolidation companies has been sued by the FTC and five states. Even though the company has filed for bankruptcy, it is still in business because it has split into a few different companies. This means you still need to be aware of companies that used to be part of a big company or have recently changed their names.
You might hear a lot of different names for "debt consolidation companies." This is because many of these companies have gotten bad press. They want to change this word to one that means something better. When you are looking for a company to work with, you may hear the terms "debt negotiation" or "debt settlement" instead.
Before you start working with a company, make sure you check with the Better Business Bureau in your area. You should find out if they have a good name in your area. You might find a business with a good rating, but that might not mean much. If someone files a complaint against a company and it is taken care of, there is a good chance that it won't show up on the company's permanent record. The Better Business Bureau doesn't have the legal power to do anything about these companies or to help you if you're in trouble.
Be very careful with any debt consolidation company that is based in Maryland or Florida or is registered there. There are no official rules against debt consolidation companies in these states, so it is possible to find a company that doesn't meet the high standards you want.
You can find out which company is the best by going online and reading reviews that other customers have left. If you look for customer reviews, you can hear directly from the people the company has helped about how good it is.
