Don’t be a victim! Avoid debt consolidation scams

You’ve heard of them, you’ve seen them advertised and because of horror stories in the media, you are not sure who you can trust anymore. Debt consolidation scams are everywhere, particularly on the internet. There are some unscrupulous debt consolidation companies that have made it difficult for trustworthy and honest debt consolidators to convince clients that they are there to help them, not scam them into more debt. In order to help you separate the bad from the good, here are some debt consolidation scams that you should watch out for in the future.

Christian debt consolidation scams

Seems that a Christian debt consolidation company is the one you should trust the most, right? Well, that’s not always the case. Sometimes it is very hard to tell how Christian debt consolidation companies differ from non-religious companies. They make the same claims and promise the same solutions, so why would they describe their company as Christian? The word Christian is used, in many cases, as a ploy to gain your trust and then your money. A good debt consolidation company should never have to rely upon religious doctrine to sell themselves; in fact, trusting Biblical proverbs to get you out of debt instead of the experience and knowledge of debt management professionals is not a good idea. This is an unethical debt consolidation scam that preys on your faith and goodwill.

Non-profit debt consolidation scams

Another common debt consolidation scam involves companies which describe themselves as non-profit. There are many trustworthy non-profit debt consolidators out there; however, there are also some scams you should watch for. Non-profit debt consolidation scams are often detectable in companies that offer free debt consolidation services. Now, don’t get confused this confused with a free analysis or consultation. Any good debt consolidation company should offer a free assessment to start.

However, be wary of the non-profit debt consolidators that operate on a “voluntary donation” basis. Sometimes, clients are not aware that their monthly payment that they expected would go to pay creditors’ bills, are claimed as “donations.” This leaves you paying the debt consolidator instead of the creditor. You will get charged with late fees and worst of all, will be out of your hard-earned money.

For more information on debt consolidation scams, contact us here.

Anything that sounds too good to be true…

You wouldn’t expect an electronics superstore to give you a free television just for signing up for their credit card, would you? Well, it’s normal to be cautious of offers that seem too good to be true. Debt consolidation scams often make claims that are untrue or impossible. For example, while debt consolidation companies can reduce your interest rates, lower each monthly payment and leave you living stress free, they cannot do this overnight. Any company that promises immediate action is exaggerating, at best.

They should offer to meet with you in person, discuss your financial situation and offer a solution that best fits your needs. Unfortunately, a few scams involving debt consolidation companies have resulted in consumer wariness over debt consolidators. Just like in any other industry, there are always a few bad companies to be suspicious of. However, it is also very important to remember that they are in the minority. Most debt consolidation companies are looking after your best interests and want to help you live debt free.

If you are in need of help but are worried about debt consolidation scams, contact us here.