| Credit Card Debt Consolidation Companies - Don't Get Scammed Checklist |
The reasons are varied as to why so many people get into debt. One minute every thing seems comfortable and affordable, and then suddenly the realization hits you that you have financially extended yourself too far and those payments you were comfortably making before seem like an unsurmountable mountain to cover. Increasing bills and credit card statements that never seem to go down drive you insane and there seems to be little, if any, light at the end of the tunnel. This is when companies that deal with debt negotiation can be of help, or not as I will explain.
Credit card debt consolidation is a financial product that has been provided by reputable debt management companies for years and it has provided debt relief to many, but there are quite a few unscrupulous companies that are preying on those of us who are desperately looking for help. These shysters have caused heartache and misery to thousands who are already tormented by the burden of severe debt.
These unscrupulous companies will take your money and tell you blatant lies, stating they are paying your creditors when in fact they are pocketing your money. Eventually the penny drops with a resounding thud when all of a sudden the mailings and calls from your creditors, the same ones that you have been told to ignore by your 'so-called' debt management company, turn into court documents and you end up being sued by your creditors for non-payment. As a result of this your credit score is well and truly trashed!
Usually, when people start to look for credit card debt consolidation services they start searching for them on the internet where you will find dozens of companies all claiming to be able to save you thousands and thereby eliminating your unsecured debt well ahead of schedule. They do this by using their relationships with creditors and also their expertise in negotiating down your debt.
You will probably be tempted to use those companies that claim to be nonprofit organizations and whose ethos is to work towards giving debt relief to those most in need. Claims of debt reduction of anywhere between 10 and 50 percent are often made.
There are some excellent debt management services out there, dealing with credit card debt consolidation specifically, who can and will reduce your debt to an affordable level, and the percentage levels mentioned previously that relate to the level of debt reduction can be achieved in most cases, however, there are companies out there that will scam you so take heed of the following advice.
In order to avoid being one of the innocently scammed use this checklist:
*Check out any companies you are considering using on the better business bureau website ( www.bbb.org). You will be able to find out a lot about a company on this site, take special note of any negative feedback. Be especially wary of new companies; if they have the muscle to mount an expensive ad campaign they should be ok but if you have never heard of them stay well away!
*If a company suggests that you stop making payments to your creditors whilst they are negotiating with them and pay them instead, stay away! You should always continue to make payments to your creditors even if you cannot manage to pay the full amount.
*You are told that debt negotiation will take six months and in the meantime pay the management company. Rubbish! Reputable companies have excellent working relationships with your creditors and your creditors have a specific department for dealing with these issues. The long and short of it is that both your creditors and your management company have a set of negotiation plans that are designed not to prolong negotiation and invariably the vast majority of negotiations take little more than a month tops! It is in nobody's interest to drag this out apart from a scamming management company.
*Leave well alone if you are promised that all the negative information will be removed from your credit report after negotiations have finished and agreed payment structures are in place. The only way that information will be removed from your credit report is if you prove it to be wrong or it has exceeded 7 years.
* If you have signed with a debt management company and you continue to receive mailings or calls from your creditors then reply to them asking why they are not contacting your debt management company directly; if there is no agreement in place your creditor will continue to contact you! Stop paying your debt management company if this happens.
* List all charges; whether they are set up charges or monthly management charges and compare them all, those that charge a large amount need to be avoided. For example a debt consolidation company cannot charge in excess of $20 in California so any that charge more than that will generally be on the make.
Finally, why not consider approaching your creditors yourself and attempt to negotiate a better deal with reduced payments, you will avoid being scammed and you will know exactly what is happening with your finances and when; also the monthly fees can go towards paying off your debt instead of lining the pockets of somebody else.
Do not pay a scamming credit card debt consolidation management company to ruin your credit history, if you do feel it necessary to use someone to help you sort out your debt make sure they are a reputable business.
If you would like to know more about the methods you can use to obtain financial freedom visit any of the sites listed below. These completely ethical methods of debt reduction have been kept secret by the financial institutions for decades so take some action now.
http://www.Creditcardconsolidationloanssite.com
http://www.DebtConsolidationInformationOnline.com
http://www.ConsolidateCreditDebtNow.com
Article Source: UnArchived Articles
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