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2004 by Mark Cairney,
First American Debt Consolidation and Loans
A home equity debt consolidation loan
is a wonderful tool to help individuals
regain their financial stability. When people wrap all
of their outstanding bills into one affordable payment it will generally
free up a portion of their incomes to begin repaying the
debts. However, because these loans use a person's home as
collateral and typically involve large amounts of money; they should not
be entered into lightly. With this in mind, it is important for individuals
to address two particular issues before obtaining a home equity
loan.
- Their willingness to change spending
habits. If people do not alter their previous financial patterns
they will likely re-amass their debts. This would create larger
deficits then originally existed and could very likely place their
homes in danger.
- The reputation of the lender. Dealing with an unreputable
company can result in the loss of significant amounts of both time
and money. Consequently, it is always important to do a bit of
investigative work before selecting a lending institution.
Let's examine a few good practical tips concerning
where to begin such an investigation.
- Ask friends family and co-workers.
This is a great place to start. If a company has done
a good job for someone you know then they are definitely
worthy of further consideration. However, if their service was less
then desirable then you should immediately remove them from your list
of potential candidates.
- Check with Better Business Bureau.
This organization provides information and corresponding
ratings based on a number of factors regarding reliability.
Any complaint received by the BBB on a given company is posted for public
display. Companies who are not registered with the Bureau are
given the option of addressing these complaints, whereas, member companies are required to do so. Therefore, it is
in your best interest to locate a lender that a) is
a member of the BBB and b) who
has a good rating.
- Verify customer referrals.
Lenders should be more than willing to provide you with a
list of customer referrals. (a refusal raises a large red
flag) It is a wise idea to follow up on these lists
and verify levels of customer satisfaction..
- Determine where they are based.
Lenders located within your particular state may be better
able to meet your specific needs.
- Verify lender associations.
Many companies belong to professional associations which provide
industry related education and require their members to adhere to reputable
codes of conduct. (1)
(1) http://www.kiplinger.com/basics/archives/2002/08/story01.html
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About the author:
Mark Cairney is a professional consultant with
First American Debt Consolidation and Loans, a debt consolidation
service specializing in financial education,
credit counseling, and debt management services
nationwide. |
