Avoid Debt Consolidation Loan Scams

With the advent of online debt consolidation loan companies getting quotes on loan offers and interest rates have become a hassle-free process.It's much easier and quicker than visiting several banks to hunt for the best deal.It's more convenient to have access to the best offers from the privacy of your home but every good idea also brings along with it a new set of problems. The online debt consolidation loans are no different.Many websites are not here to help you with a debt consolidation solution but to steal your hard earned cash.


If you believe that every debt consolidation company out there is actually waiting to assist you reduce your debts then you are in for a surprise.This is just not the truth. Several companies providing debt consolidation solutions are more interested in extracting money from you than in helping you with a debt reduction plan. Such fraudsters frequently perpetrate debt consolidation scams and when the authorities catch up with them they simply close shops to come back with a newly scripted scam .These scamsters are always busy devising new ways to loot their clients.Don't let them succeed! To avoid falling prey to them, a basic knowledge of the signs that should sound the warning bells is necessary.

Let us look at some of the scams rampant in the debt consolidation services industry :

Some companies charge exorbitant fees for appraising your case. This is one of the most common debt consolidation scams .This is known as price gouging .After receiving the fees the services refuse the client any loan.Some might never again hear from them.In a desperation of getting out of debt people become victims of such scams.

Another scam used in the industry is to promise a guaranteed loan approval in advance no matter how bad your credit history.They charge excessive fees with the assurance that a bad credit won't affect your loan request.People with bad credit history or in a situation where bankruptcy seems the only option see this as a final chance to pay off their debts but soon find themselves in deeper waters.

There are other services that claim to dramatically improve your credit in a weeks time by erasing your bad credit.If this was possible then getting your loan approved would become so easy but unfortunately,this never happens.If a credit repair agency could do anything to improve your credit then you too could do it by contacting credit report agencies and disputing any inaccurate or outdated items in the credit reports.People who make such promises just want their share of the pie and then disappear.When you come across such companies ,run as fast as you can and never look back.

Some of the scamsters grant free money.If only they kept their promise :-) Unfortunately, it’s another one of their dirty tricks to get your money.They lure clients with their offer only to leave them high and dry in the end.Never trust such consolidation companies that say they can get you a grant to repay your debts.

Before choosing a debt consolidation company always do your research.Check for how many years they have been in existence.Apart from the scams already discussed ,also make sure that there are no hidden costs associated with the deals they offer.It's even better if you have been referred by a friend or family who has past experience with the company providing debt consolidation solution.It's in your best interest to learn and research all you can before you choose a debt consolidation company,even if it takes a little more time.