Beware of Fraudulent Debt Consolidation Services

Beware of Fraudulent Debt Consolidation Services Introduction Debt consolidation is surely a good option to get rid of debt. However, you need to be careful when choosing a debt management agency or you could end up getting duped out of your hard earned money.

Fraudulent Debt Consolidation Agencies The current economic crisis is making it tough for many to meet expenses that continue to increase day by day. As people borrow money from one source to cover the interest of another, the debt continues to pile up. Ultimately it leads toward bankruptcy. According to debt management plans, debt consolidation is a good option. There are lots of companies in the market who offer to remove your bad loans, bankruptcy and even negative credit history and make you debt-free. Well, it sounds too good to be true, and in fact there is no dearth of fraudulent companies in the market. The catch is to find the right debt management agency that is truly committed to its service offering.

Tips to Identify Disingenuous Consolidation Companies Debt management solutions are out there, and, if the strategies are incorporated effectively, it surely can bring significant change to your debt situation. But many agencies just make big promises to get fees from clients. And once they have your money, you can’t do anything if they don’t fulfill their commitment. Now the question is, how do you know if a debt management agency is genuine or not? Read on to learn about certain factors that can help you identify the fake consolidation agencies.

Check the Better Business Bureau Rating Genuine debt management companies are registered with the BBB, so it’s a good idea to check their ratings to find out about the company’s stability. BBB accreditations will also help you find out if any consumer complaints have been registered against the company.

Government Debt Settlement Companies Many debt management agencies are listed on state government websites. You can easily view these companies, which are registered with the government, and chose one of them.

Because they are already registered, you won’t have to worry about being taken advantage of.

Check That FTC Rules Are Followed Debt consolidation companies can’t charge any advance fees without settling the client’s debt. This is a new FTC rule, and is actually better for debt-holders. In case the company you have chosen is unable to settle your debt for some reason, you can opt for another agency.

Beware of Non-Profit Status Many non-profit debt management companies actually charge hefty fees. Hence, before you enroll for their services, it’s ideal to double-check their status.