Just about all of us are swamped with bills such as credit cards and car loan, so we are turning to debt consolidation services to aid us regain control of our finances. And it does have its advantages; since debt consolidation services can also help you lower your interest rates and monthly payments. However there are some dishonest people out there, and that entails you need to look out for scammers when you are seeking for debt consolidation service online. Here are three warning signs of a fishy company:
# 1 Sign: Suspicious Fees
A few companies charge $100 just for reviewing your account, often cloaked as a "credit analysis." Other companies even offer an "educational program" consisting of forms, letters and information that can be found for free on websites. Do you think it's reasonable to be charged for things like this? I don't think so. Be wary of any company that asks for up-front payment before receiving any service.
# 2 Sign: "Too Good to Be True” Promises
"Your monthly payment will be cut in half- guaranteed," or "Interest rate will be slashed to zero percent!" "Finish paying it off- in 2 weeks!"
These cases of exaggerated promises are used to bait you in, and they're rarely true. No one can work miracles. Anticipate it to take longer than 2 weeks. Debt consolidation services take much longer to get an agreement with a lender, so it is no quick fix, just remember that.
#3 Sign: They make first contact
Any company that sends out unsolicited e-mails, cold calls your house, or sends you junk mail isn’t reputable. You want to find them, not you. Check out their Better Business Bureau rating, to see if they are treating their customers fairly. You might also consider asking family and friends that have actual experience with the service.