What is a debt consolidation agency?


You can find a debt consolidation agency either online or in your community. The majority are supposed to be non-profit organizations aiming to assist consumers in finance and money management. Debt consolidation agencies will provide loan counseling and debt consolidating plans to troubled consumers.

Debt consolidation agencies maintain close relationship with financial institutions and credit card companies who provide them with percentage of the debt repaid by the debtor. This is how debt consolidation agencies succeed in operating as non-profit entities. Those agencies try to reduce and completely eliminate their clients' debts over a short (usually five year) period.

When contacting a debt consolidation agency, make sure you ask about fees, as there might be some hidden fees, and ask for their clients testimonials. Even if there are some "voluntary contributions", debt consolidation agencies are considered more affordable than approaching a private lender or financial institutions.

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