May 18, 2007

Debt Consolidation Scams to Avoid

“Debt Consolidation” offers readers information about all types of debt consolidation including low interest secured and unsecured bank loans, credit card consolidation, mortgages, etc. It weighs the pros and cons of debt consolidation for those with bad credit and contrasts the advantages and disadvantages of debt negotiation. It is useful for both consumers and small businesses.

Although the Internet has revolutionized communications and provided many hitherto unknown opportunities, it has also provided plentiful opportunities for scam artists to prey on the unsuspecting. This is no less true in the area of debt consolidation. Following are a few debt consolidation scams to avoid:

1. Debt Consolidation Scam #1: Debt Consolidation Through Free Government Grants

There are many organizations out there that promise information about “free government grants”, which the government is supposedly giving away like candy, and the money from which you can use any way you please, including debt consolidation. Yeah, right. Perhaps as a donation to the [Insert Your Name Here] Lifestyle Enhancement Fund? Sure, the US government gives away a lot of grant money, but not for personal debt consolidation. It’s not particularly easy to qualify for these grants, there are strings attached to the use of the money, and if you use it to consolidate your bills you might just earn yourself a free vacation at the Club Fed.

2. Debt Consolidation Scam #2: “No Repayment Necessary”

This one should be a no-brainer, but here’s how it goes: “US banking laws prohibit the charging of interest, and this has been supported by several Supreme Court decisions. So, borrow the money, refuse to pay it back, and then hire a lawyer to get you out of repayment since they had no right to lend you the money in the first place. We’ll tell you how (for a fee).” If you fall for this debt consolidation scam then I’ve got some land in Arizona I’d like to sell you. By the way, even if US banking law what these guys said it was, you’d still have to pay back the principal.

3. Debt Consolidation Scam #3: “Free Debt Consolidation Services”

So how is this company making money? Then again, cheap debt consolidation services are not necessarily a scam, although it would pay to be wary of anything that sounds too good to be true.
In a nutshell, most (but not all) debt consolidation scams are transparent, designed to take advantage of someone in great financial distress – desperation seems to reduce the IQ by about 50% in some people.
Don’t be one of them.

Please refer to the “Debt Consolidation” site for your financial planning needs.

Friday, March 23, 2007

Free Debt Consolidation Quotes - What You Need to Know

“Debt Consolidation” offers readers information about all types of debt consolidation including low interest secured and unsecured bank loans, credit card consolidation, mortgages, etc. It weighs the pros and cons of debt consolidation for those with bad credit and contrasts the advantages and disadvantages of debt negotiation. It is useful for both consumers and small businesses.

Are your monthly bills approaching the size of your paycheck? If you’re having trouble making your debt payments as they come due, there is a way out. Of course, almost everyone has heard of debt consolidation. In case you haven’t, debt consolidation is a single loan that you use to pay off all your creditors. This will help you in several ways:1. It gets the dogs off your back – temporarily at least. A different dog will come back howling if you fail to timely repay your debt consolidation loan.2. The monthly payment on your debt consolidation loan total should be lower than the total monthly payments on your current bills. 3. The interest rate on your debt consolidation should be lower than the amount of interest you pay on your existing debt. But don’t forget to count the late fees you’re probably paying on your current debts.The first step is to get a debt consolidation quote – free debt consolidation quotes are available both on and off the Internet. Be careful not to get scammed, though, because there are many animals lurking in the debt consolidation jungle – banks, credit unions, credit repair firms, specialized debt consolidation firms, and even Lefty the Loan Shark. Look around at all the options and get free debt consolidation quotes from several of them. Don’t just accept the lowest debt consolidation quote you can get – quality counts. Get all of your debt consolidation quotes in writing, and consider the following:

1. Make sure they offer free debt consolidation quotes – there’s no sense paying for what’s widely available free of charge.

2. Check out their reputation – don’t even consider a debt consolidation company that has a website but no physical address or has not joined the Better Business Bureau. If possible, visit them in person. If you can’t, then do insist on at least a live telephone conversation with one of their debt consolidation counselors.

3. Find a debt consolidator that will negotiate with your creditors so that you end up with a lower debt consolidation loan principal.

4. Avoid debt consolidation firms that have representatives sporting Popeye forearms and prominent tattoos – enforcement can be a bit on the aggressive side with these outfits (wink!).Once you have checked out each institution that has offered you a free debt consolidation quote, you can select the one you want to go with after grading them using the foregoing criteria.

Please refer to the “Debt Consolidation” site for your financial planning needs.

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