If you have gotten in over your head with student loans, credit card debt or medical bills and are wondering what to do about it, a debt consolidation may seem like a better idea than bankruptcy and what it will do to your credit rating. But beware of the debt consolidation scams which are lurking everywhere these days and may only push you further into debt. Filing for bankruptcy may be a better solution than you think. Recently, the National Consumer Law Center did a secret shopper investigation of 10 debt-relief agencies and discovered a variety of scams, deceptive practices, and overcharging that would severely hamper any borrower’s attempt to relieve themselves of debt. Some of the most common included: Charging large up-front fees before doing anything. Characterizing government services as their own. Charging for free government debt relief programs. Not including a three-day cancellation clause in their contracts as…
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