There is no such thing as free debt consolidation services. Credit counseling services that offer debt consolidation for free or with no fee may have hidden fees attached to their schemes. Debt consolidation companies are funded by your creditors and are waiting to make extra money off you.
If you have massive debts, enrolling in a debt consolidation service can help you bring down your rate of interest and your amount of repayment. Soliciting the help of a free debt consolidation service will be cheaper than it would to get the same service from a for-profit company.
Risks of Free Debt Consolidation Services
For-profit debt consolidation companies charge a flat fee per month and competitive charges over and beyond the flat fee; where free debt consolidation services are subsidized in part by creditors, so they need only to charge the flat monthly fee, which means that debtors will ultimately end up with lower rates.
For-profit services prefer clients with relatively good credit, as they are more likely to get the full repayment. Since debt consolidation companies that offer free services enjoy healthy subsidies from the creditors, they can afford to take the risk of helping people with poor credit who want to set their finances right.
What is your level of debt? If you have poor credit free bill consolidation services are more attractive than for-profit services.
However, scam companies have been quick to exploit this preference and proclaim themselves as free services. If you do not want to end up with even more massive debt you need to check the reputation of organization that claims to offer free services.
Find Free Bill Consolidation Services
Free debt consolidation service could mean free quotes, or else free first-time sessions with counselors. The services guaranteed will have a charge attached, unless you land with a company out to help people get back on track without burying them deeper in debt.
One of the better services for debt consolidation are Credit Unions. Anyone affiliated with the government also will help in most instances without jacking you for more money.
If the services are affiliated with the government, you better believe they will be towing the line, since the government’s privacy is at stake.
So, if you need debt consolidation agencies that offer no fee or free services, seek out the companies that affiliate themselves with the government. And if you go directly to the source — the government — you can find more information about free debt consolidation on various government websites.