Take out the middle man with a debt consolidation bank by approaching your bank or one you are familiar with. There are many reasons that debt consolidation companies exist. They are there to help you when you feel there is no other alternative. The downside is that these companies need their piece of the pie. Like any business a debt consolidation company is in the business to make money. They do this through you.
By going with a debt consolidation bank you are working directly with your lender or potential lender. The bank is going to have a loan they offer you with interest and closing fees. This loan will consolidate your other debts paying them off while you make one monthly payment. We call it a debt consolidation bank, but in reality any bank could offer you a debt consolidation loan. Some tend to offer these types of loans with more frequency, though.
Typically the debt consolidation bank will offer you a refinanced mortgage or home equity option. If neither of these avenues work for you it might be time for an unsecured personal loan that will pay off your other debts. A bank is less willing to offer a loan without collateral unless your situation warrants it. In other words you might have a great portfolio regarding your credit history and scores. In this case they are more willing to work with you.
The best approach is through your own bank. The debt consolidation bank may not want to work with you because they do know you personally and how much you keep in your accounts. On the other hand you should not discount them. Even when a bank is unwilling to help you due to their personal knowledge of your bank accounts, it doesn’t mean they won’t offer you an alternative. They may point you towards a debt consolidation bank that can help you.
In the end if you find going directly to a debt consolidation bank is not helpful you might need to go to the debt consolidation company. The company has more banks to speak with than you might.