What is the best debt consolidation service?

As a starting point most people ask "what is the best debt consolidation service?" The answer is relative, in that the best service for each individual depends upon the amount and type of debts owed and their level of expectations. Consider debt consolidation services as two distinct categories. First, true consolidation services do not require new loans to combine liabilities, but rather administratively lump all debts into one account. Reduced payments are negotiated, and disbursed by the service from one monthly payment. The second type of consolidation technique today is the consolidation loan, which technically, does not consolidate existing debts but rather pays them off entirely and replaces old debts with a single new note.

What they should do for you:

What should you expect from a true consolidation service? At a minimum, the best services provide all customers the following:

• free quotes for all fees required before requesting a contract.
• review each debt individually for errors and legal compliance.
• contest disputed debts and preserve legal rights.
• individually negotiate each legitimate debt principal, interest, late fees, and payment schedules.
• pay all creditors promptly when receiving a monthoy payment from a client.
• provide at least monthly correspondence accounting for all payments made, apportionment among creditors, and explain all account activity.