Where NOT to Find Information on Debt Consolidation

It seems like that for even the most responsible American, debt relief has become as much of a need as food and shelter. In order to get some help with the massive debts that we all seem to be facing, there are companies offering debt consolidation services. There is no reason to feel guilty because you are facing some big debt problems. The massive financial collapse that we have all endured is putting everyone in a pinch. So if you are thinking about consolidating those dozens of debt accounts into one that may have a more reasonable payment, this is solid financial thinking on your part. What you need, then, is some solid information on debt consolidation so you can get your finances in order.

Sadly, as happens in any emergency, there are those out there who would use your need for good information on debt consolidation to scam you out of more money without helping at all.  What many of these scam artists do is get you to subscribe to their service once a month so they are taking a lump sum out of your bank account or charging it to your credit card.  Then they, allegedly, make arrangements with your creditors to accept less than is owed.  The final step is to have you send to the consolidation company one lump sum payment that they will pay your creditors with.

The problem is they take the money and never pay the debts.  They just pocket the money you give them.  After a few months like this, you end up with thousands of dollars you sent to the bogus debt help company but none of your bills have been paid.  You are in terrible shape with your creditors and out a lot of money as they disappear into thin air.  While many of the advertisements on TV and the internet that say they are giving you valid information on debt consolidation sound great, many of them are crooks operating this kind of scam.

Scam artists are the types of people you should NOT turn to for information on debt consolidation. There are ways to telling if you are dealing with a crook and not a responsible agency who can genuine help you consolidate credit debt. 

Here are some clues…

• If it sounds too good to be true – it probably is.
• If the company spends lots of money advertising on TV and the internet and you never heard of them, that is a signal they might be scams.
• If they use phrases like “things your credit card company doesn’t want you to know”, that is an age-old scam approach.
• If they promise to get a big percentage of your debt dismissed by some “loophole” that only they know about, that is a big falsehood.  A responsible company giving you the straight information on debt consolidation will tell you that credit card companies are not going to just let your debt go like that.
• If their program includes you paying them one lump sum payment and then them paying your creditors, that is a cause for concern.  What guarantee will you have that they will actually pay that money to the people you owe?

This is not to say that there are not various companies out there that will give you reliable information on debt consolidation.  Use the same common sense you would with any other important financial partnership.  Make sure the company you are working with is for real, that they have been around a while and that you can find them when you need them.  Make sure they have references and that they check out with the better business bureau.  If the information on debt consolidation companies results in you getting help with a genuine debt help organization, then you will be glad you were careful choosing who you would do business with.