you find yourself in debt and you are thinking about contacting a debt consolidator
or a debt management company, there are a few things that you should know. First,
not all debt consolidators are trustworthy. You will find that some consolidators
are more concerned with taking your money than they are with helping you to manage
Second, not all debt consolidators and debt management companies are
legitimate. They only use this front to steal identities.
When shopping around,
use the three signs shown below to determine which debt consolidators you should
Sign #1: Unusually Low Payment Quotes
To lure trusting
customers, shady debt consolidators use one of the oldest tricks in the book:
the bait and switch. The debt consolidator starts by quoting unusually low monthly
payments. The quotes are so low, that it would seem ridiculous to choose another
company. Unfortunately, once you have signed up for the program, the debt consolidator
will end up saying that there was some sort of problem or miscalculation and the
quote will no longer stand, leaving you with a high monthly payment. When shopping
around, use quotes to compare consolidation fees, not monthly payments.
#2: Large Upfront Fees and Deposits
Some debt consolidators request
enormous fees or deposits that must be paid upfront. These fees are sometimes
in the hundreds, or even thousands, of dollars. Some debt consolidators promise
to return the money to you after you have completed the program. Unfortunately,
that rarely ever happens. Beware of this common debt consolidation scam.
#3: Personal Information Requests
You should be very wary of a debt
consolidator who requests to see your personal information, such as bank account
numbers, social security numbers, etc., before providing you with a quote. They
could be using this information to commit identity theft. The only thing a debt
consolidator needs to provide an accurate quote is your creditor’s names, balances,
and interest rates.
Visit Debt Sanity to view our Recommended
Debt Consolidators online. Also, visit Debt Sanity for more information on
finding the best Consolidation
Debt Solution online.
Article Source: http://EzineArticles.com/?expert=L._Sampson
you contact a debt consolidator, consider working out your own Debt
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