Not all companies offering debt consolidation services are worth your time. If you’re unlucky enough, you might encounter a couple of shady companies looking to scam people who’re already going through some rough financial situations in their lives. In this article, we’ll provide you with some tips to help you avoid these types of scams on your journey to becoming debt-free.
So, without any further ado, let’s get right to the bottom of it!
If it sounds too good to be true, well, then it probably is
If a company promises to free you of debt in a week, all while charging you minimal interest and lowering your total debt, it’s time to look somewhere else. There’s no guarantee of what the company can negotiate with your creditors, so ensure you avoid companies that promise instant results without even asking for your information.
While you’ll undoubtedly find a company that can fulfill most of your needs and requirements if you look hard enough, you should still avoid deals that sound way too good to be true.
If they require you to pay upfront fees just to qualify for their services, it’s most likely a scam.
If the debt management company asks you to pay a fee before they even starting working on your particular case, it could mean they’re trying to scam you. Always ask for as many details as possible to ensure they’re not withholding any information from you. You have the right to know about everything that goes down with your debt consolidation plan.
Do your research
Doing your research is the best way to avoid getting scammed by shady „debt-relief“ companies. If you’ve found yourself asking questions like “Is Credit Associates A Legit Company“, you can simply ask the internet! There are many places online where you can find reliable reviews and ratings for all debt consolidation companies on the market.
After you’ve searched the internet, start contacting the companies directly to get some more information. If they seem hesitant to provide you with the info you need, perhaps it’s time to move on to another lender.
Avoid companies that use aggressive tactics on you
If a company seems to be overly pushy, you’re better off avoiding them. A trustworthy lender will never harass you with calls or emails to make you sign up for their services. Furthermore, don’t let anyone push you into deciding before you’ve compared all of your options.
Don’t work with companies claiming to have access to government-funded programs
If a company tries to claim they’re working with the government, you’re probably being scammed. In most cases, if there’s a government program available that has debt relief coverage included, you’ll find out about it from official sources.
So, if you can’t find any official confirmations for these types of claims made by the debt management companies, they’re probably lying to you.
The bottom line
We hope our article helped you learn how to deal with various debt consolidations scams and we wish you the best of luck in all of your future endeavors.