When you visit the Government of Canada website, this is the first thing they say about using debt consolidation companies:

“Consumer alert: Some companies offering help to pay off debt or repair credit are misleading consumers.”

Unfortunately, there are many companies out there claiming to help those who are financially struggling, only to mislead their “clients,” intentionally or not.

However, there are companies out there who are genuinely there to help you consolidate your debt in the most cost-effective way. It may take some time, but in the end, doing that research will save you more money in the long run. When looking for the right debt consolidation company to help you with your debt, there are a few key things you need to look for.

Look for a company that is willing to go the extra mile when needed.

The biggest problem with most consolidation companies is that they can’t solely represent a debtor.  Their statutory duties do not allow this as it would conflict with their duties to the creditors. In addition, the larger the settlement, the more they get paid. So what is the solution? Who can you trust? After all, we are not talking about acquiring a basic service or product.

Review client testimonials.

When was the last time you made a financial decision without turning to Google to look at a company’s reviews? When choosing the right debt consolidation company, it’s best to look at testimonials to see what others have said about their experience. Anything less than an overwhelming number of 5-star reviews should be avoided. If you want real results, read the stories in the client testimonials. Are they genuine accounts of what people have experienced, or are they all generic responses? It’s always good to see what others say before making a final decision.

Ask the right questions.

If you want to learn more about a debt consolidation company or you want to compare services, reach out to the company, and ask questions such as:

• How long have you been in business?
• What is your approach to debt consolidation?
• Can you guarantee that lenders will stop calling me?
• What can I expect my financial situation to look like 1 year from now? 5 years? 10 years?

It is important to ask these questions to determine how knowledgeable a company’s debt-relief specialists are. If they are able to provide you with real information and helpful answers to your questions, that’s a good sign. If a company can’t provide you with an answer or an honest response to these questions, you should continue your search.

See what the company is promising and ask yourself if it is realistic.

Watch out for companies claiming or promising any outrageous or unrealistic results. If anyone claims they can eliminate your debt in weeks or something along those lines, those companies should be avoided.

Everyone’s financial situation is different. There is no way a company can promise that all your debt will be gone in a certain time frame. For some, their debt can be paid off in a few weeks. For others, it can take months or years to pay off. When looking for the right debt consolidation company, work with someone who states they will assist you in creating a plan to eliminate your debt. Someone who will provide you with real advice to help you relieve your debt. Moreover get you on the right track to debt freedom, not someone who will do it all for you.

Consider the fees.

For the services they provide, most consolidation companies will charge a fee. Every company has to pay their bills, and every employee has to earn a living for their work, let’s be honest. But how do they earn their living, that’s the big question. With some companies, as mentioned above, the more you pay – the more they earn. If a company says, they don’t charge a fee, that usually means they have built the fee into your repayment plan. Most credit counselors charge a fee, even if they say they are not-for-profit. Again, it’s good to call a few different companies and compare prices alongside the services they offer.

Don’t be pressured.

When you call different consolidation companies, a big thing to consider is who makes you the most comfortable. Now, by comfortable we don’t mean who gives you the emotional warm and fuzzies. Those can be misleading of course. By comfortable we mean that you do not feel like you are being sold something, talked into something, or even guilted into something. Your finances are not something you want to take a flyer on. So, make sure you work with someone who is knowledgeable and who can patiently provide you with more than enough information to help you eliminate your debt. You should never feel pressured or pushed into making a decision.

Start with us at GetMeDebtFree today.

At Get Me Debt Free, we look at a variety of debt management strategies and we specialize in tailored solutions for each and every client. There are no proverbial cookie cutters in our toolbox. We believe this approach provides the most efficient way for Canadians with unmanageable debt to overcome their financial challenge. If you want to learn more, please contact us for a free consultation.

You have nothing to lose and much to gain, so fill out our contact form and take that first step to a debt-free future.