Debt Consolidation Scams
Debt consolidations scams are everywhere. If you want to protect yourself and your finances, you need to learn as much as you can about debt consolidation scams and how to avoid them.
It would be nice to think that every debt consolidation service is on your side. Unfortunately, that is simply not true. There are some debt consolidation services that are more concerned with taking your money than they are with helping you to manage your debt. These types of people perpetrate debt consolidation scams on a daily basis. To avoid becoming one of the many victims of debt consolidation scams, you need to know what to watch out for.
Debt Consolidation Scam #1
Beware of any debt consolidation service that makes outrageous promises, such as “perfect credit in a week” and “zero interest loans”. These claims are completely unrealistic and should immediately raise a red flag.
Debt Consolidation Scam #2
Free money to pay your monthly bills! Sounds great, doesn’t it? Unfortunately, it’s just one of many debt consolidation scams. If a service tells you that they can get you a grant to help you consolidate debt, do not get your hopes up. Grants are made available to people who wish to start a business and attend school, but there is no such thing as a grant that will pay off your old bills.
Debt Consolidation Scam #3
Some services ask for enormous fees (usually called refundable deposits) to look at your case. This is called price gouging and it is one of the most common debt consolidation scams in the industry. While many legitimate services will require you to pay an initial fee and perhaps even monthly fees, you should never be asked to pay an outrageous fee or amount before any work has been done on your case.