Avoid Getting Caught Up in Scams While Consolidating Your Debts

| January 19, 2012

Avoid Getting Caught Up in Scams While Consolidating Your Debts

 

Scams While Consolidating Your Debts

Scams While Consolidating Your Debts

 

When you are in debt, other than debt consolidation, majority of the people opt for debt consolidation. This is because, while debt settlement helps in lowering the outstanding debt amount, debt consolidation helps in lowering the interest rate and the number of debts that you have. Thus, if it seems to be hard for you to manage the several unsecured debt payments each month, you can opt for debt consolidation. Even if the interest rates have become too high, you can consolidate the bills.

Avoiding debt consolidation scams

Though you can do debt consolidation of your own, sometimes it may seem difficult for you to get all of your debts consolidated. In such a situation, you may be required to get the help of a debt consolidation company. Or even if you are going to consolidate your debts, you may think of taking out some payday loans in order to pay off the debts.

But you should know that most of the payday loans are scams and illegal. So, if you are planning to pay off the debts that you have through the payday loans, think twice. You would never want to make the situation more complex with the payday loans. You would never want to fall prey to scams while consolidating your debts.

On the other hand, if you go to debt consolidation company for help, you will have to be aware of the authenticity of the company. There are many such debt consolidation companies which are not at all authentic and do not aim at helping you in your debt problem. So, it is really important for you to check with the authenticity of the company.

Checking with the authenticity

So, the things that you will be required to do in order to check with the authenticity of a debt consolidation company are:

1. Check the BBB accreditation – You need to check if the debt consolidation company is accredited with the Better Business Bureau or BBB. The BBB is a corporation and business rating and accreditation company. So, you need to check with the BBB accreditation of each company you are planning to take help of.

2. Determine if the company talks to you about the process – You will have to determine if the company is ready to talk to you about the debt consolidation program. This is important for you to know the effect of debt consolidation on your credit. If you find out that the company is not ready to talk to you about the process, you should avoid getting help from such a company.

3. Find out if the company is making unwarranted claims – Try to find out if the company is making any kinds of unwarranted claims. Like, if the debt consolidation company claims that they are going to help you pay off your debts within a few months, you should think twice before enrolling with them.

4. Check if the company is charging upfront fees – Check if the company is charging any upfront fees. If they are, you should avoid getting help from them. According to the rule by FTC or the Federal Trade Commission, no debt relief company is supposed to charge any upfront fees from you.

5. Find out if the company is offering free counseling – Try to find out if the company is offering you free counseling session. In most of the cases, good and non-profit debt relief companies offer such free counseling sessions.

So, here are the things that you should follow in order to check if the debt consolidation company from whom you are going to get help from is an authentic one or not.

 

Avoid Getting Caught Up in Scams While Consolidating Your Debts

 

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