Some debt consolidation companies, sadly, are not legitimate. Some companies exploit consumers in numerous ways with promises of freedom from debt. Educate yourself on the process of consolidating debt and watch for these signs in order to protect yourself from shady operations.
Beware Of To Good To Be True Monthly Payments. All debt consolidation companies are given the same lower interest rate when they go to the credit card companies to try and lower your interest rates. Keep in mind though that they cannot get your minimum payments reduced. Knowing this information should make you leery of any to good to be true sounding monthly payments. Instead of finding out what kind a monthly payment that a company can offer you, check and see what their fees are.
Insist On All Debts Being Included - When companies insist that all of your debt's be included in a program, it isn't because they are about your financial situation. Some debts, credit union loans for example, are ineligible for lower monthly rates, while other debts, such as student loans, may already be at a low interest rate. The truth is these companies stand to gain more in fees for handling more accounts, and try to do so by insisting you include all of your debts in their program. Consider your debts first, and chose which of these debts you feel have a better chance of being eliminated before you enter a program.
Require A Large Upfront Payment - A commonly used scam in debt consolidation is charge a large fee in advance of hundreds, even thousands of dollars. A few offer to refund such a fee after their customers finish, but in reality people rarely compete these programs. Be aware of this tactic and make sure you don't end up spending any more then absolutely necessary to put yourself in the best possible financial standing.
Look for a company that offers a flat monthly fee. You can usually find a legitimate non-profit company that can offer a flat monthly fee because they are usually subsidized by financing companies. You can find good for profit companies that will also offer a flat monthly fee with the addition of a competitive fee.
Offer Debt Settlement And Other Services: There are companies who promise you to offer other services like debt settlement, credit repair, and other programs. They are all sugar coated venoms. They will only swallow your money and you will face utter disappointment. If you really need to make a debt settlement, you have other valuable option, that is, declaring bankruptcy. This will be a better financial choice, I would say.
Request Account Numbers First: You must be highly suspicious of any company that asks for your account numbers, social security number, or other personal information before providing a quote. If you give all these details just like that it will lead to identity theft and you will be the looser. Simply providing name of the creditor, balances and rate of interest will be enough to get an accurate quote. - 30462
Beware Of To Good To Be True Monthly Payments. All debt consolidation companies are given the same lower interest rate when they go to the credit card companies to try and lower your interest rates. Keep in mind though that they cannot get your minimum payments reduced. Knowing this information should make you leery of any to good to be true sounding monthly payments. Instead of finding out what kind a monthly payment that a company can offer you, check and see what their fees are.
Insist On All Debts Being Included - When companies insist that all of your debt's be included in a program, it isn't because they are about your financial situation. Some debts, credit union loans for example, are ineligible for lower monthly rates, while other debts, such as student loans, may already be at a low interest rate. The truth is these companies stand to gain more in fees for handling more accounts, and try to do so by insisting you include all of your debts in their program. Consider your debts first, and chose which of these debts you feel have a better chance of being eliminated before you enter a program.
Require A Large Upfront Payment - A commonly used scam in debt consolidation is charge a large fee in advance of hundreds, even thousands of dollars. A few offer to refund such a fee after their customers finish, but in reality people rarely compete these programs. Be aware of this tactic and make sure you don't end up spending any more then absolutely necessary to put yourself in the best possible financial standing.
Look for a company that offers a flat monthly fee. You can usually find a legitimate non-profit company that can offer a flat monthly fee because they are usually subsidized by financing companies. You can find good for profit companies that will also offer a flat monthly fee with the addition of a competitive fee.
Offer Debt Settlement And Other Services: There are companies who promise you to offer other services like debt settlement, credit repair, and other programs. They are all sugar coated venoms. They will only swallow your money and you will face utter disappointment. If you really need to make a debt settlement, you have other valuable option, that is, declaring bankruptcy. This will be a better financial choice, I would say.
Request Account Numbers First: You must be highly suspicious of any company that asks for your account numbers, social security number, or other personal information before providing a quote. If you give all these details just like that it will lead to identity theft and you will be the looser. Simply providing name of the creditor, balances and rate of interest will be enough to get an accurate quote. - 30462
About the Author:
Layla Vanderbilt is the content coordinator for a leading website that offers for debt consolidation advice and guidance.
No comments:
Post a Comment