The wise consumer often knows that things advertised as free aren’t always so. This makes it smart to ask the question about whether people will end up paying for an advertised free debt consolidation quote. There are several answers to this question, and several types of payment that could be required.

Many debt consolidation agencies are businesses, even if they’re nonprofit, and they definitely want the business of customers, or they aren’t sustainable. Some companies issue a loan to the person to consolidate debts and others take out a loan on behalf of the person and essentially become their new creditor. Most of these legitimate businesses will not charge money if they assess credit and advertise this service as free (though a few will and people should ascertain this prior to getting a quote). However, many of these businesses do charge fees in loan origination or in some form of monthly service fee that must be paid for using the service. This fee gets hidden sometimes and isn’t mentioned until after consolidation begins, unless customers inquire.

Since a number of free debt consolidation quote offers originate online, the customer has to be even warier. A company might give this information for “free” but also sell the customer’s information to many advertisers. This could lead to significant increases in spam email, unwanted advertisement and circulars in the mail, and even calls to a home to sell products. Information is a commodity, and people should be able to find a visible guarantee on a website that the free debt consolidation quote isn’t paid for by selling customer information to third parties.

In rare instances, giving out personal information about debts and credit history could lead to a much higher price in theft of personal information. It is really difficult to verify the repute of a business located solely online. Prior to giving out any information to get a free debt consolidation quote, people should verify that the agency is reputable. They can often do this by looking at whether the agency is registered with organizations like the Better Business Bureau and if there are any complaints pending against it.

One way to avoid some of the concerns mentioned here is to start locally. There are several good credit counseling agencies, which may give free advice on how to consolidate debt. Some of these are very effective though they may charge a monthly fee for services. Most will consult without a fee, but ask first. Nonprofit agencies may be easier to work with too, because their goal is to sustain the company without making huge profits; those attempting to profit off the debt troubles of others must be considered suspect and lacking in pure motive.

This doesn’t mean that there aren’t okay agencies to use online to get a free debt consolidation quote, but it may be a little trustworthy. If people can find these services from reputable companies locally, they may feel a little more secure when they investigate any companies first before doing business with them. Ultimately though, if debt consolidation occurs, it still isn’t free. People will need to come up with money each month to repay their debts, though total paid might be lower and repayment may occur more quickly.