Be Aware of Debt Consolidation Scams

Many people are in a panic about their current financial issues and want to quickly dispose of their credit card debt by going with the first consolidating company that comes in contact with them. This could be a huge mistake on your part. By not thoroughly researching reputable credit control agencies, you can quickly become an unwilling member of debt consolidation scams.

Sometimes circumstances cannot be helped and you must come to the realization that consolidating your credit cards is the next best step you can take to getting out of debt.  Most consolidating companies are reputable with honest and hardworking credit counselors available to work with you to find the best solution for your credit problems. Unfortunately, there are many less than reputable credit counselors out there who claim to give you the best monthly rate, but fail to show you the final product after all of the upfront fees and other hidden costs are tacked on hoping that you are so desperate enough to consolidate your bills, that you are willing to sign anything before looking over the fine print.

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.

Contacting the Better Business Bureau requesting information from this consolidator will give you insight on any complaints that have taken place within this company. You will be able to get a first hand glimpse if any clients were victims of debt consolidation scams through this company, or if it is as reputable and upstanding as it claims to be. Yes, your credit situation may be dire, but it can get a lot worse if you don’t do the proper research by going with a reputable credit card consolidator.