Money, Cash & Finance

Although the economy is showing very faint signs of revival, consumers have still not been able to repair their financial damages and it will take some time before it finally happens. Consumers are trying their best to get out of debts, credit card debts in particular. The debt help companies are busy these days and offering various debt solutions like credit card consolidation, debt settlement, debt management, credit counseling etc. And every company offering debt help is trying to prove their worth in this rat race.

Not all of these debt relief companies are authentic and before you hire the services of a debt help company, make sure the company is operating legally. For instance you are planning to consolidate your credit card debts and you have decided to opt for credit card consolidation. How will you identify whether a company is trying to take you for a ride? The following paragraphs will highlight certain facts about debt consolidation scam artists.

* Do a bit of research

As mentioned above, make sure the company you are hiring is authentic. How will you rate a company? Take help of the attorney general of the state in which you are residing. Look up the website of the Better Business Bureau (BBB). Ask your friends who have availed the company’s services before. It is important to know the past track record of the company that includes the number of complaints recorded against it and also the number of drop outs.

* Do not divulge personal information

Do not disclose your personal information to the company. They’ re required to know only your outstanding debt balance, interest rates attracted by your debt accounts and the names of your creditors. Your Social Security Number and accounts numbers are not required so don’t divulge these details.

* Don’t see monthly payments, watch out for fees

You should be receiving the same rates for almost debt consolidation programs. This is because all creditors usually settle for the same deals. In case, a company is offering you lower payments every month, you are probably required to pay more interest. This will swell the final payments in the long run.

* Watch out for hidden fees

Don’t shell out extra fees to debt consolidation. You may come across a company that will ask for extra fee for services like providing you with quotes and for carrying out an debt analysis. Don’t pay for these services.