Beware of Debt Consolidation Services Online

Most Americans are overwhelmed these days with large amount of debt, whether it is credit card debt, a mortgage, college tuition or a car loan. To help regain control of our finances many of us are turning to debt consolidation services and more and more of us are doing so online. Debt consolidation can be a great help for many, interest rates and monthly payments can often times be lowered saving the individual from filing bankruptcy. Whether it is an online debt consolidation service or a brick and mortar company you must be careful when choosing a debt consolidation service. The following are three things to look out for when choosing a debt consolidation service online to avoid the potential scammers that are out there.

Fees that Seem Unreasonable

Be suspicious of debt consolidation services that ask for a fee or up-front payment before you receive any type of material or service from them. Many unreliable companies will charge an up-front fee of $100 or more just to do a “credit analysis” before actually providing any service. Others will offer so called “educational program” which is made up of free materials gathered from the internet. The cost to you for this “educational program” can be as high as $1,500. A reputable company will typically do an evaluation of your credit and inform you of what they can do for you before requiring any sort of payment.

Too Good to be True

Don’t be enticed by statements such as "We'll get your interest rate cut to 0%!" or “We’ll cut your monthly payments in half”. Another promise often made is that this can all be done in “just two weeks”, These types of outrageous promises are designed for one thing, to suck you in. You are in a vulnerable situation and they try to appeal to your sense of urgency. These results are very rarely seen and never within two weeks, you should expect to wait at least a month if not longer before you start to see any effects that your debt consolidation service will provide.

Beware of Solicitations

Any company that sends out SPAM, cold calls your home, or sends you junk mail is most likely not a reputable debt consolidation company, any good company that is going to be reliable and provide a valuable service will wait for you to contact them. Avoid debt consolidation companies that contact your first.

It is always a good idea to double check any debt counseling service that are you considering using with the Better Business Bureau to see if any complaints have been filed against the company. You might also consider asking family and friends if they have any experience with the service or if they know of a reliable debt consolidation service.