When in debt, you’re going to do desperate things, that can lead to worst scenarios than what you’re in today.  When in a desperation mode, it’s important to remember that you don’t want to jump out at the first offer that you see.  If you’re going to take the professional route, that’s fine, but you want to make sure that you know what professional service is going to work for you.

It sounds too good to be true

When you see an ad online, they are trying to sell to you.  If it sounds too good to be true, it probably is.  As the old saying goes,  “if it sounds too good to be true, it is”.  Keep this in mind when looking at ads both online, and offline.

Here are a few examples that I’m talking about –

• Get money within minutes!
• No credit check needed!
• Get $1000s with no credit check.

The best thing to do here is research the company with the BBB, and ask for references as well.  The more homework you do on a company, the better it’s going to be for your wallet.

Watch out for those hidden fees

Many companies are going to come to you, and promise you the world.  What you want to look out for is what they charge.  Since they need to stay in business, they are going to tack on a fee.  Make sure that you ask them how much they are going to charge you in order to manage your debt.  Yes, they will most likely roll your bill into one payment, but you’ll want to know what they are throwing on as well to keep themselves a float.  You can’t get away from this fee, but you can compare, and negotiate.

How can I get a good loan?

Get a home equity loan – The best thing that I would do is look into tapping into your mortgage.  If the bank will allow it, I would advise that you borrow against your loan.   Not only will you know where the money is coming from, the interest rate will be comparable to your mortgage as well.

Look for a personal loan – Personal loans are generally the best way to go as well, if you’re looking for a low interest rate.  No, I’m not talking about a payday loan type service, but rather a local bank, or a peer to peer service such as Lending Club.

Do it yourself – Like any professional service, if you sit back, you will find that you can do it all on your own.  Find out how you can settle credit card debt yourself.  The more you know, the better it is for you.