Debt Consolidation: Friend or Foe?

Debt consolidation has become big business in this country over the last several years. Consumers with the good conscience to avoid filing for bankruptcy are turning to debt consolidation in hopes of saving their credit and getting out of debt sooner. But is it really necessary to turn to a debt consolidation company? Critics of the programs offered through most debt consolidation companies would, of course, tell you no.

Many debt consolidation companies have gained a bad reputation. This isn't really surprising considering that some debt consolidation companies have filed for bankruptcy protection themselves. Several have claimed to be non-profit and been shut down for circumstances surrounding hidden fees.

Debt consolidation companies have gotten such a bad name as of late that some don't even call themselves debt consolidation companies any longer. It's doubtful they believe that it's hard for consumers to recognize that they are in fact debt consolidation companies. However, so many have been warned to stay away from debt consolidation companies that it's probably a smart business move on the part of any debt consolidation company to keep the term out of the company name.

You may have seen the word "Christian" in the name of some debt consolidation companies. Obviously religion has little to do with debt consolidation and this is seen simply as a sales tool to play on the moral obligations a lot of people hold when it comes to borrowing money. The fact that so many companies are stooping to the level of claiming to be a religious organization should make it pretty plain to see that there may be some question as to the ethics of companies like this.

Debt consolidation, negotiation, settlement, whatever you want to call it, is a personal choice. What doesn't work for the critics, may change your life. It's important to check out the debt consolidation company thoroughly if you choose to go this route, but don't say you weren't warned to think twice about debt consolidation if you do, in fact, get burned.

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more credit counseling, bankruptcy and free debt consolidation information that you can research in your pajamas on his website.



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