3 Signs of Debt Consolidators to Avoid

By Author on Jun 28, 2010 in Debt Management

If you are in debt and you’re thinking about contacting a debt consolidator company or a debt management, there are some things you should know. First, not all debt consolidators are trustworthy.

Only use this front to steal identities. When shopping around, use all three signs shown below to determine which debt consolidators that you should avoid.

Sign # 1: Unusually Low Rates Payment

To attract customers confidence, consolidators debt shadow using one of the oldest tricks in the book: the bait and switch. The debt consolidator began with a quote from the unusually low monthly payments. The quotes are so low, that would seem ridiculous to choose another company. Unfortunately, once you have registered for the program, the debt consolidator will end up saying there was something wrong or miscalculation and state will not stand anymore, leaving you with a high monthly payment. When shopping around, use quotes to compare rates of consolidation, no monthly payments.

Sign # 2: Upfront fees and deposits large

Some debt consolidators huge application fees or deposits to be paid in advance. These rates are sometimes hundreds or even thousands of dollars. Some debt consolidators promise to return the money to you after completing the program. Unfortunately, this almost never happens. Beware of this scam common debt consolidation.

Sign # 3: Applications of personal information

You must be very careful with a debt consolidator who requests to see your personal information as bank account numbers, social security numbers, etc, before providing you with a quote. You could use this information to commit identity theft. The only thing a debt consolidator must provide an accurate quote is his name creditors, balances and interest rates.

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