BBB on Debt Consolidation and Scam

Scammers are on the loose again with a new tactic supposedly to help out those who need help consolidating their debt. The Better Business Bureau is warning those in Texoma, TX of a new scam. In particular, BBB warns about scammers who are only trying to get money from people in-debt instead of helping them out with debt consolidation. As such, research about reputable companies as well as knowledge of scammers tactics may help so as not to get people fooled.

The Do’s and Dont’s

First off, the BBB warns against consolidators that charge fees even before the debt is settled. These scammers will put a lot of pressure on you even to make voluntary contributions. Furthermore, they may attempt to get you into a new government program or even move you to stop talking to your creditors. This is absurd and will surely get your creditors to be uncooperative.

The BBB also reveals that scammers will often refuse to give out a lot of information about their services. In fact, they won’t provide free information. Instead, they oblige you to enroll in a program without even discussing your financial situation first. Remember, no good consolidator will attempt to consolidate your date without a careful assessment of your financial standing. This is just like going to see the doctor who requires you to pay right away even without checking your signs and symptoms. This is a major red flag as the scammer will just take your money for enrollment and leave, getting you in even deeper debt.

Finally, the BBB warns against having to pay into any debt management program without your creditor’s acceptance into the program. There are no shortcuts to this and you don’t get to have the final say in deciding how your debts will be paid. It is true that while it is easy to fall into debt, there are no easy ways to get out of debt. You need a realistic financial plan, which doesn’t happen by simply enrolling into a program. You also need discipline and determination to achieve your goals, which ultimately helps you get out of debt for good.

The BBB recommends those deep in debt to focus on a solution that fits your needs, your budget, your credit, assets, and financial goals. Research is important in finding the right professional help to get you out of debt. Credit Advisors Council is a great place to start, as they only partner with highly reputable Credit Repair Companies. Shop around, ask the right questions and avoid an offer that is too good to be true. As tempting as it sounds, there is no plan or program that will get you out of debt in an instant.

Remember that there are several ways you can get out of debt. It may be difficult but it won’t be impossible, no matter how great and overwhelming your debt has become. If you’re looking for a good debt consolidation solution, you can go for a personal loan. However, you need to prepare a high credit score to qualify for a lower interest rate. Also, a majority of personal loans are on a short-term basis, which may increase your monthly payments. This may be good if you’re opting to pay down your debt more aggressively. You can also opt for a credit counseling’s Debt Manage Plan, which can help get you out of debt with lower costs and a longer time frame. Finally, you may want to look into cash-out refinance if you have home equity and a good credit score.

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