How Can I Judge Whether a Debt Consolidation Company is Legitimate Or Fraudulent?
It is unfortunate that this question is necessary.
However, the debt consolidation industry is one that has many fraudulent companies.
Unscrupulous people tout programs that are neither intended to help one get out of debt nor to help a person stay out of debt.
However, among this sea of poor businesses there are many gems and the following article is intended to help a reader find those gems.
Fortunately for the consumer, there are many advocacy groups that use and rate the more popular organizations.
Some of the best of these groups include the Better Business Bureau and Consumer Reports.
Unfortunately, Consumer Reports costs money to access and rates a far smaller audience of companies, so the Better Business Bureau is recommended.
This organization will give any company with which they deal a rating and has a completely free scorecard that tells exactly how and why the business got that rating.
Another option that a consumer should do is a lot of in-depth research.
This is something that anybody entering one of these programs should do anyway, so there is no reason not to do it.
One must call up the potential companies and ask them exactly what the plan is to consolidate their debt.
Many fraudulent consolidation organizations will merely say that they are going to loan the user money.
If that is the case, one must ask what the interest rate will be.
A genuine consolidation company will understand that someone in such a situation is unable to pay exorbitant interest rates, while many fraudulent businesses are simply loan sharks.
One must learn what he or she is getting into.
And beyond that, the best thing to do is to listen to one's gut.
Sometimes it can be hard to tell these companies apart.
If one does not trust a business, the smart thing to do is to just not go anywhere near it.
The market is full of various debt consolidation agencies with various ideas and there is always another one who can offer services at an equal level.
Many people have debt trouble these days and one can always simply ask friends and family for suggestions of someone to work with.
A fraudulent company is likely always fraudulent, so anecdotal evidence should be enough to trust one.
The point here is that one should not give control of his or her finances to any company that they do not 100% trust.
However, the debt consolidation industry is one that has many fraudulent companies.
Unscrupulous people tout programs that are neither intended to help one get out of debt nor to help a person stay out of debt.
However, among this sea of poor businesses there are many gems and the following article is intended to help a reader find those gems.
Fortunately for the consumer, there are many advocacy groups that use and rate the more popular organizations.
Some of the best of these groups include the Better Business Bureau and Consumer Reports.
Unfortunately, Consumer Reports costs money to access and rates a far smaller audience of companies, so the Better Business Bureau is recommended.
This organization will give any company with which they deal a rating and has a completely free scorecard that tells exactly how and why the business got that rating.
Another option that a consumer should do is a lot of in-depth research.
This is something that anybody entering one of these programs should do anyway, so there is no reason not to do it.
One must call up the potential companies and ask them exactly what the plan is to consolidate their debt.
Many fraudulent consolidation organizations will merely say that they are going to loan the user money.
If that is the case, one must ask what the interest rate will be.
A genuine consolidation company will understand that someone in such a situation is unable to pay exorbitant interest rates, while many fraudulent businesses are simply loan sharks.
One must learn what he or she is getting into.
And beyond that, the best thing to do is to listen to one's gut.
Sometimes it can be hard to tell these companies apart.
If one does not trust a business, the smart thing to do is to just not go anywhere near it.
The market is full of various debt consolidation agencies with various ideas and there is always another one who can offer services at an equal level.
Many people have debt trouble these days and one can always simply ask friends and family for suggestions of someone to work with.
A fraudulent company is likely always fraudulent, so anecdotal evidence should be enough to trust one.
The point here is that one should not give control of his or her finances to any company that they do not 100% trust.
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