Debt Consolidation Scams

Have you ever seen a commercial or an ad promising “free government grant money?” According to these ads, the government and other organizations give away nearly one half a trillion dollars each year, and all you need to do is apply! The ads go on to state that the money can be used for anything, including debt consolidation, student loans, a yacht or just about any frivolous thing you can imagine. All you need to do is call their toll free number, buy their book or enroll in their program and the details are soon on their way to you.

Many people look for debt consolidation services only to find themselves worse off. Supposed consolidation companies require fees, up front, that people willingly pay. Only to find out that their debt just increased. Numerous individuals have been hurt, severely, by these scams, and some have even been forced into bankruptcy.

The signs of high prices taking their toll on consumers are starting to show. As more and more consumers fall deeper and deeper into that nasty state of high debt, missed payments, contemplating bankruptcy and mounting stress from piles of unpaid bills perhaps free debt consolidation services may be the answer to their problems.

There are many debt consolidation companies which can provide you help to consolidate your debt with their proposed solution. But unfortunately, not all debt consolidation companies are legitimate. There are many scams that are waiting to catch an unwary customer and make their. People with high pressure and anxiousness in looking for a debt solution normally may overlook the terms and conditions of the service from these scams and as the result, you may trap into bigger debts because the service from scams normally incur highly upfront fees with many other hidden cost (of course they will promise you their 110% guaranteed that your debt problem will be solved)

Beware of them. Calm yourself down and take your time to think carefully and don’t sign till you are fully satisfied with the credentials of the consolidator.

One scam that is becoming more and more popular is to ask for payments up front, before your loan has actually been secured. Once you pay the company this upfront payment, they take the money and run. You will most likely never hear from them again. Therefore, never give anyone money until your loan is approved and you have all the conditions in writing.

Money Up Front Scams

If you are in a situation where you need to file bankruptcy or seek credit counseling, your life is likely already hard enough as it is. The last thing you want is some con artist taking more of your money. Unfortunately, a huge market exists for these types of scams. The most common trick used by debt consolidation services is to make an offer to loan a client money despite their credit history. They will ask that the client pays three months in advance before they are able to loan them money. The company then takes the payments and refuses to loan the client money, stealing from them.

Be watchful for some key debt consolidation scams tactics that many counselors try to con you into. Reputable companies work with your creditors to help negotiate the lowest possible interest rate for you. The sole purpose of a creditable consolidator is to combine your debt and consolidate it into one low monthly payment following only one key interest rate. Those less-than-stellar agencies may give you an extremely low interest rate quote (thus luring you in), when in reality when the bottom line is signed, your rates and monthly payments will be raised significantly, often times leaving you worse off than you were before you chose to consolidate your credit cards.

Another great way to find a reputable consolidation company is to log onto the Internet. There are a number of companies to choose from; the key is finding them. A basic Internet search should lead you to lists and lists of companies that will help you with debt. Look for companies that are well-respected and have been around for more than a year. After all, this way, you know the company is for real and isn’t some scam. The Internet is a great resource because you can not only find such companies, but you can easily find out what people are saying about them.

Compare Debt Consolidation Offers Today

Debt consolidation is not for everyone, but for those it can provide relief to, be sure to compare multiple consolidation offers from various company. Care One Credit is just one of the many services, including government non profit debt services, and attorneys that provide consolidation and settlement plans, it is best to get free online quotes for multiple offers and choose the best solution for your current needs.

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