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Tag Archives: DebtConsolidation
Today it seems the economy has many individuals in hot water over debt; many have turned to a debt consolidation loans as a potential front runner for reducing or relinquishing their debts. Here are some debt consolidation scam “pitfalls” to look out for when considering this option for debt relief: Debt consolidation is no cure-all for debt relief. For instance, creating a budget with an estimated time frame for debt payoff may provide you with a better idea of how long it will take to pay off debt organically. Many companies who advertise debt consolidation will provide you with a time frame to which your debt will be paid off, but you must consider the interest rate and fees that will be lapped on top of your current debt. In many cases, it may take you a shorter amount of time to pay off the debt on your own as…
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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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Linda Blackwell of Reidsville, North Carolina, was recently scammed out of a thousand dollars by an online debt consolidation company offering to loan her money. She was told to send in $500 to qualify for a $5,000 loan, which she did, but the loan never came. When she finally got someone on the phone, she was told there was a problem but that she could get $10,000 if she sent another $500. So guess what she did?