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Getting A Legitimate Debt Consolidation Quote | Financial Planning Tips

Getting A Legitimate Debt Consolidation Quote

Quickly accumulating debt can become overwhelming and worse yet, it can very easily snowball into an unmanageable situation.  Organizations like Freedom Debt Management are trying to help people get out of debt and manage it completely. Situations in which you may find you have to seriously change your lifestyle, sell possessions, perhaps some possessions get repossessed, or even worse you find yourself filing for bankruptcy.  Like a payday loan consolidation, a debt consolidation quote could be your first step to managing your debt and moving towards a little more financial freedom.

Ask for debt consolidation tips & advice from professionals and the first place to try is your bank. Having a relatively good or long history with your bank can help a lot. Previous debt you may have paid off with your bank can also put you in a good position to refinance with them. Take documents confirming your income and records of your current debt along with proof of regular payments for debt held outside the bank. Once they have established your income and debts they can assess what repayment amounts you can afford to make, and if it is sensible for them to provide you with a loan. They may opt to pay off your debts directly on your behalf, or you could be credited with the full amount of the loan to pay the debts directly yourself. Make sure that you do that straight away; a common condition on this type of loan is that you must prove you have cleared your other outstanding debts within a week of receiving the debt consolidation loan.

If you have been denied a loan from your bank you can look to other finance or credit companies for a debt consolidation quote. Interest rates are commonly higher, but not always. If you have a good previous relationship with a credit company try them first. They will want to see the same information as would be required by a bank, records of debt and up to date payments as well as confirmation of your income. Often debt consolidation loans with these types of companies can be easier to obtain than with a popular bank. You may find their application fees or annual fees are very high or that there are certain clauses in their contracts that differ from the banks. There are a number of very good reliable companies out there to work with, just make sure you do a bit of research on them and fully understand the contract you are entering into before signing. Just because you are in a position of needing financial assistance does not mean you cannot ask any question you need to until you are confident with them and their quote.

For every helpful, reliable finance company or bank out there willing to offer a decent debt consolidation quote, there is probably about four that you should stay clear of. Unfortunately it’s the people that are in desperate need of financial help that usually end up falling for their traps and tricks. We see advertisements flash up online and somehow get sent ridiculous money offers in the post. All in the hope that we’ll sign up immediately based on their promises only to find out weeks or months later it was a big mistake. Hidden fee’s, ongoing costs, rising interest rates, minimum term clauses, no early payback options – the list of hidden rules and restrictions goes on. They are interested in getting your business, not helping manage your finances or become debt free. Seek some advice from trusted friends or family if you feel unsure, just make sure it’s before you sign the agreement.

While getting a good debt consolidation quote may not be the answer to everyone’s financial troubles, quotes are usually free of charge so there is no harm in seeing what is on offer.

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