Debt Consolidation And Credit Scams

Debt is a very real problem today and people are looking for answers to their problem. In answer to that outcry, debt consolidation companies have made it their business to swoop in and help their fellow man. Sometimes they swoop in like vultures. Before you look into debt consolidation make sure the company you find is not a scam artist.

Since independent debt consolidation agencies became mainstreamed, the business has attracted many scam artists. Whenever something good comes along there is always a downside. Crooks have found a way to turn your desperation into big bucks.

First, know that every letter or advertisement that claims to want to help you does not. Ask a few questions of these people before you decide to do business with them.

Let us imagine for a moment that there is a man who has a measurable debt. He wants to get out from under so he seeks help from one of the debt consolidation companies that calls his house. They tell him that they can get his debt settled for a fraction of what he actually owes.

The man decides to work with them and enrolls in the debt consolidation program. According to the company, his creditors agreed to one-third of the price paid over a six month span. The man makes his payments starting with a lump sum at the beginning.

He thinks everything is fine until he starts getting calls from the credit card companies. They want their money. The man is confused because he is been making payments to this agency. When he calls the toll-free number for the agency all he gets is an answering machine.

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