When it comes to choosing the best debt consolidation company, you should proceed with care and make your decision based upon several critical components. First, realize that even the best debt consolidation company is not a benign entity; they are in business to make a profit. The most common practice of a debt consolidation firm is to compile all your liabilities into a lump sum loan, paying off existing creditors and leaving you with a single, monthly payment. You pay the debt consolidation company, and they in turn pay your creditors.

Read your contract with these companies carefully, and avoid those that charge a high monthly fee or take a percentage out of your regular debt payment. If the fees are too high, or if the percentage taken is too great, then your financial situation will not improve. Before signing on with what you feel is the best debt consolidation company, you should first check with both the Better Business Bureau (BBB) and the Consumer Credit Counseling Service (CCCS).

This latter organization is a true, non-profit entity, and offers both credit counseling and a wealth of advice on debt management. They are more than happy to answer questions by phone, in person, or online. The initial consultation is free, and if your debt situation warrants it, the CCCS may offer to help you set up a Debt Management Program (DMP). The cost for this service is $25 US Dollars (USD) per month, with an additional set-up fee of $25 (USD). If you are incapable of paying this amount, it will usually be waived.

The CCCS should always be your first stop when considering any kind of debt consolidation or debt management program. They will work with your creditors to negotiate affordable payments on outstanding debts. This generally leads to a cessation of harassing phone calls, and often a halt to threatened legal action.

Selecting the best debt consolidation company is a tricky proposition at best, as the fees and charges of many of these firms could actually worsen your debt situation. Debt can lead one to the sort of worry and desperation that blurs judgment, and the key to finding the best debt consolidation company is to take your time and note any unpleasant surprises that may be buried in the fine print. Without question, the best course of action when considering debt consolidation is to contact the CCCS, and with their assistance, formulate a plan that will help reorganize your finances in both the short and long term.