Debt Consolidation Companies
Debt Consolidation Companies - Avoid These At Your Risk!
Many people in debt face tough times, financially and emotionally. It is at this time that you may not be thinking clearly and are a prime target for shady companies looking to profit from your losses. The following debt consolidation companies are scams waiting to happen.
Debt counseling companies that are for profit; theirs, not yours. Debt counseling firms are generally non-profit, so you can take their advice at face value. However, if your debt counselor suggests a loan from their organization, take notice; these loans are high interest, morbidly expensive with their fees and almost always require you to put up your house as collateral, which they hope to get and sell in the not so distant future.
Financial companies who offer loans. These companies have the most incredible ad departments, who paint pictures of financial success and lure people into thinking their debt consolidation loans are sent from heaven. Unfortunately, that is rarely the case. They charge high rates and fees, and your credit rating suffers if you borrow from finance companies; how's that for quality service!
Loans that require a large up front fee. These dream sellers will "qualify" you for a loan that seems too good to be true- which it is. No professional lenders would make such a claim. These individuals (or companies) are looking for a handout, and will take your fee, and turn around and charge you a super high interest rate on a loan amount you shouldn't have qualified for in the first place.
Debt consolidation middlemen. Some debt consolidation companies claim they will arrange a debt consolidation loan for you, and use the loan amount to pay of the other creditors. Sounds good in theory, but they never get a loan set up and insist their "clients" keep paying them monthly for the debt. All the while the real creditors aren't getting paid, and you're sinking into debt faster than ever.
These scams may seem obvious, but due to the fragile emotional condition debtors may be in, they find enough victims to make a profit. If you are feeling in the dumps and are approached by these debt consolidation companies, ask a trusted friend or loved one to sit in on a meeting. Hopefully, cooler heads will prevail.
|
