This is the second article in my series about getting out of debt. Debt is a serious issue that affects a lot of people and mastery over money is essential to beat this problem. This article is about what to look for in a debt consolidation service.

Your first strategy is to make sure your income is greater than your expenditures. The easiest way to accomplish this is to have a written budget. You should model your budget after a set of good budget advice; there are numerous excellent resources out there, both free and paid, that can help you set up your budget. It’s important to make sure you stick with the budget you’re assigned and not change it to suit your needs, even if that needs may be to cheat and spend more than your budget would be.

You should use your budget to help pay off your debt, and obtaining out of debt is a wonderful goal to have. However, it’s additionally important to make sure this takes place without you losing some of the items your budget may normally allow you to buy or ignoring other expenses altogether. If your budget cuts out some areas of enjoyment, you’ll find yourself ” fulfilled ” and will most likely stay broke unless you’re careful.

Another important element of any good debt reduction strategy is getting your credit card bills consolidated. If your credit card debt is simply too high to overcome with your budget, credit card consolidation may be a good way to get the debt under control. The way this works is simple. When you have more debt than you can handle, it becomes a distressing endeavor to keep up. In this case credit card consolidation services become necessary. The service you most likely need to look for is one that suit your needs and don’t cost a fortune. Around town, just about every credit card consolidation business exists but not all is what it seems. Here are some tips on what to look for:

How You Get It Done

Look for a credit card consolidation service online or in your area. Using the internet you can usually find a variety of options as long as you take the time to look. Make sure they have a good reputation. Try to find a place that you feel comfortable with, at a location that you would normally be comfortable with. You don’t want to be embarrassed about your financial situation if you don’t have a good feeling about it. Once you decide on a company, take some time researching the different services the company provides and saving money. Most offer high quality credit counseling as well as debt consolidation help. Most also offer their service several times throughout the year as your financial needs may change. Ask them for a free consultation or ask them to send you a flyer describing their services.

Cost

Once you’ve determined that you are going to credit counseling services, you are going to have to pay a fee. This fee can be a flat rate or percentage fee per month, depending on the program. It varies on an hourly basis and is usually a percentage of your consolidate monthly payment. Make sure you ask them about this fee structure before you sign on. If they don’t provide an estimation, go somewhere else. Check them out thoroughly and make sure they provide you with a quote. You should also always have an understanding of what you are paying for and how the plan works. Ask them to break the plan down into manageable steps to see how you can see progress with your debt reduction.

When you reach an agreement with a credit card consolidation service, use the negotiated monthly payments to pay off your debt and get out of debt quicker than you otherwise could. Take some time to reflect on the money you and the company will save and consider how it all adds up. Remember, credit card consolidation services can be a great way to eliminate high interest fees and get out of debt fast, but only if you use the agreement to your advantage.