Is There Such A Thing As Free Debt Consolidation?

Many debt consolidation companies now offer something called "free debt consolidation." To many people who are deeply in debt, this seems like a great solution. After all, when you are making huge payments on your debts each month, anything that offers "free" anything is bound to be pretty attractive. However, before you rush in and sign up for a "free debt consolidation" solution, you should know exactly what you are getting yourself into. Free debt consolidation has many meanings and different companies use the term differently. In many cases, companies using the term "free debt consolidation" are offering debt consolidation services with reduced administrative fees. In some cases, though, these fees are just hidden. With free debt consolidation, then, you get a debt consolidation loan that pays off all your debts and allows you to repay one loan rather than several. In regular debt consolidation, companies offering these loans - or companies arranging these loans for you - generally charge you a hefty administrative fee up front and may charge you monthly fees for their service. Companies offering free debt consolidation - either as a promotion or as a regular service - may not charge you the administrative fees. They may offer reduced monthly fees or no fees at all. Some companies offering free debt consolidation may simply hide their fees more effectively. To know whether your free debt consolidation solution really is free you need to read the fine print of any agreement the company wants you to sign. You will also want to make sure the company is in good standing with the Better Business Bureau - if it is, then it is more likely that they really are being up-front about free debt consolidation promises. Of course, many people in debt have found that they can find truly free debt consolidation by avoiding companies

altogether and seeking their own solutions to debt. While this can be a bit riskier - you do not have the support of an established company behind you - but it can save you a lot on administrative fees and costs. Many debtors have found free debt consolidation help at their banks, for example. Many banks offer personal lines of credit or other loans which can help you pay off your creditors. In many cases, these loans charge only interest, and there are no additional fees to pay. Most banks will even allow you to book a free appointment to talk to a financial officer about free debt consolidation options. In many cases, this is the closest you will come to truly free debt consolidation.