The Biggest Signs Of A Debt Consolidation Scam

As the bite of the recession has lessened and consumers start to do damage control

, debt consolidation companies are finding their services in high demand. But like with every kind of industry, the more popular it is, the more likely you'll run across imitators.

And some of them want nothing more than to part you from your hard-earned money.

Over the past two years, debt consolidation scams have been running rampant - and although various countries have all stepped up their consumer protection programs and watchdogs, there's still a real risk that you could come across one of these unscrupulous merchants. So how can you tell if a potential debt consolidation company is out for your money? We've narrowed down these three deceptive signs:

A debt consolidation company who promises to reduce your debt for just pennies should be approached with caution. Because the company has no inclination of the amount of debt you have, the age of the debt and who your creditors are, they're in no position to make such a promise to you. Only after assessing your total debt can a debt consolidation service give you a final quote for how much you'll be charged.

The same kind of caution should be used with companies who promise to make you debt-free within a matter of months. Again, this boils down to not knowing exactly how much you owe - so a company that's quick to make big promises before getting to know your debt is probably more interested in parting you from your money. Additionally, some debt can't be consolidated, like back child support and student loan debt; therefore, a company can't really claim that you'll be 100% debt-free.

If a debt consolidation company asks for an exorbitant fee to reduce your debt, run away as quickly as possible! Many debt consolidation companies ask for a hefty portion of the debt as their fee, with some even requesting as much as 15% of the original debt. Don't buy it for a second. There are plenty of non-profit companies out there that will reduce your personal debt for as little as the price of a takeaway meal.

Remember, debt consolidation should never make you feel like you're in a worse financial position than what you started with. Stay smart - and keep an eye out for those scammers!

by: Phil Waterton

POST COMMENT

Athlean X Review-Athlean X Scam Buying Qualified Leads vs. Telemarketing Email Marketing - Watch Your Language! Countries Gearing For Top Spot In CRM Support Market Online Marketing Strategy - Take Your Online Prospects And Clients Offline To Connect With Them CPA Renegade Review – Do These CPA Marketing Methods Work? Process And Profits With Website Promotion And London Uk Seo Comapny Article Marketing Is A Way To Get Tons Of Free Traffic Fat Burning Furnace Scam - The Success Of This Program IT Companies' Weapon - Telemarketing Base Your MLM Marketing Strategy Plans On Your Individuality The Formula For How I Earned Over $2,000 In 3 Days As an Affiliate Marketer Hybrid Water Power Review-Hybrid Water Power Scam