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Credit Consolidation Services Things To Be Wary Of


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credit consolidation services could be the answer to your debt consolidation solution. Just be wary of anything that looks too good to be true.

Published in: Economy & Finance, Business
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Credit Consolidation Services Things To Be Wary Of

  1. 1. There are quite a few fraudulent companies doing the rounds at the moment, preying on people who have terrible debt problems.
  2. 2. These credit consolidation companies prey on the vulnerable and offer what appears to be the answer to all of their financial troubles.
  3. 3. So just how do they do it?
  4. 4. They publicize that they will be able to erase your bad credit history, or that debt consolidation can effortlessly and swiftly cure your debt problems.
  5. 5. Most of the time you'll wind up paying out very high fees or rates of interest for services which might be totally unnecessary.
  6. 6. Other ways they use, are to publicize cheap loans saying that no credit check is necessary.
  7. 7. In several cases though you might need to pay excessive up front fees and there's no guarantee that you'll be offered the loan anyway.
  8. 8. One of the most typical ways that these debt negotiation services work is to offer a single large loan to consolidate your entire debts with no credit check required.
  9. 9. These are extremely risky because they often have exorbitant rates of interest and generally your own home is put up as security.
  10. 10. So what are the warning signs?
  11. 11. Any company that offers to wipe out a bad credit report if you pay a fee up front and agree to a debt consolidation solution by combining them all into one loan.
  12. 12. The only real way that you'll repair your credit file is making sure that all your outstanding repayments are made on time
  13. 13. Beware of companies who ask for an advanced fee up front with the assurance of a guaranteed loan.
  14. 14. These are sometimes refused because of an unforeseen technicality, which can then render the advanced fee non-returnable. .
  15. 15. The final warning sign and by far the most risky in my opinion is this
  16. 16. People or organizations hold seminars and push products that say you will be able to pay off your mortgage and other debts.
  17. 17. The kits they offer will often sell between $300 - $500 and have things that look like checks but are named certified drafts
  18. 18. Purchasers are then advised that these drafts can be issued in any amount. These items are normally worthless and anybody who pays their bills with these risks being prosecuted for using fraudulent items.
  19. 19. So in closing if something appears too good to be true, walk away because you can actually end up in more serious trouble than you were in the first place.
  20. 20. For more help and advice on any credit and debt problems that you may have then visit my site