Stay Away from Scams | Debt Consolidation Part 8

Con artists everywhere

As is the case with mortgage loan modification, any time there is an increased demand for a financial service, scam artists come out of the woodwork. There is always someone looking to prey on desperation and anxiety if it can help them make a buck.

Debt consolidation is no different. There are plenty of legitimate, reputable debt consolidation companies out there who will act as your counselor, advocate nd stress reliever. However, there are also people who want to take your money and run.

How scammers operate

Generally, debt consolidation scammers represent fake companies, pose as debt counselors, pretend they’ve gotten  your debt reduced and consolidated and ask you to write them a check or wire a certain amount every month.

You can probably see where this is going. The scammer keeps the money, the creditors don’t get paid, and you are left even worse off than where you started.

Here are some ways to avoid debt consolidation scammers:

1. Do your homework

Ask your debt consolidation counselor a lot of questions about the company. If counselors are not willing to give you thorough information about the company, the process and what exactly they do, this is a red flag. If a counselor isn’t upfront about answering your questions, you may want to try another company. ... click here to read the rest of the article titled "Stay Away from Scams | Debt Consolidation Part 8"