In the article I’ll tell you about why it is important to Beware Of Fake Debt Consolidation Services. When you are heavily trapped in debt, a good option for reducing as well as overall managing your debt load would be to go for debt consolidation. Debt consolidation, unlike bankruptcy brings with it less hassles. It also does not to a great extent provide a limit to your credit for a number of years.
This is a perfect tool when you deal with several loans. However, it should be noted that with the economic downturn, fraudsters and scammers creep out into the open, making vulnerable customers for debt consolidation services fall prey to them easily. Here are a few scam signals to be aware of:
– There are certain debt consolidation scam services who try to take the form of legitimate and recognized brands of financial service and mix with different names skillfully in a bid to prevent trademark litigation. Certain legitimate sounding names are used like “federal”, “national” etc in order to build a confidence in the minds of unsuspecting clients.
– A sign of a fake debt consolidation company is to ask for fees in advance. The fees are to be paid even before consolidating your debt and negotiating the loans with the creditors. It so happens many a times that these companies suddenly stop all communications with you the moment they get your fees.
– Remember nothing comes for free in the world of business. Be wary of companies who display big advertisements proclaiming free debt consolidation. Also do not be carried away with big and attractive signs or pop ups which give a guarantee of money back.
– While you are visiting a particular debt consolidation company’s website, try to find little details like email address, a map or location address, toll free number, etc. Do not pay attention to forums which have been built by the service provider, but look up generally on the internet to check if there is a history of legal cases or complaints. You can also go through the feedback forms, comment boxes on the company’s website to read what earlier clients had said.
– It is important that you conduct a proper research and do a bit of homework regarding the exact workings of debt consolidation. Do not hesitate to ask multiple questions to the representative even if they appear redundant.
– Carefully look into the credentials of the company. The reliable and legitimate debt consolidation companies generally have good credentials as well as a license for practicing their services. You can go to the Better Business Bureau website to see if the company is listed there.
– Beware of companies which ask your credit information through internet forms even without evaluating your present financial condition or discussing the different options available. They may have limited information regarding your Visa cards and your debts.
It is not good to be over confident with money dealings. Always make sure you do adequate homework prior to going for debt consolidation. By gathering proper knowledge regarding the signals of scam companies as well as shopping around, consumers can guard themselves against falling prey to fraudsters.