3 Things To Watch Out For With Debt Consolidation Services Online
 |
| 3 Things To Watch Out For With Debt Consolidation Services Online |
Most of us are swamped with bills like credit
cards and auto loans, so we're turning to debt consolidation services to help
us regain control of our finances. And it's a good idea, since some debt
consolidation services can also help you lower your interest rates and monthly
payments. But there are some unscrupulous folks out there, and that means you
need to watch out for scammers when you're looking for a Debt Consolidation
Service online. Here are three warning signs of a disreputable company:
Large, outrageous fees
Some companies charge $100 just for reviewing
your account, often disguised as a "credit analysis." Others offer an
"educational program" consisting of mostly free forms, letters and
information gathered from Internet websites. The cost for this
"education"? It can be as high as $1,500! Be wary of any company that
pushes for up-front payment before you receive any type of service or
materials.
Unbelievable promises
"Your
monthly payment will be half of what you're currently paying!" "We'll
get your interest rate slashed to zero percent!" "You'll be paying
less in just two weeks!" These types of exaggerated promises are designed
to lure you in, and they're rarely true. No one can work miracles, and they
certainly can't work them in just two weeks. Expect it to take at least a
month--and probably longer--before you see the effects of debt consolidation on
your finances.
They make first contact
Any company that sends out SPAM, cold calls
your home, or sends you junk mail is fishing for a fee. Chances are they only
want your money, and once they get it they'll offer very little in terms of
services. Most reputable companies will wait for you to contact them.
You can always double check a Debt Counseling
Service with the Better Business Bureau to see if any complaints have been
filed against the company. You might also consider asking family and friends if
they have any experience with the service.
0 comments:
Post a Comment