BEWARE OF DEBT CONSOLIDATION COMPANIES

No ScamsI cannot begin to tell you the number of clients who come to me after starting with debt consolidation companies.   They have thing in common: they have less money than they did before they started with these companies.  If you owe a lot of money, and just can’t manage, you are an easy target for the unscrupulous who come out of the woodwork to prey on the vulnerable.

THINK BEFORE HIRING – NOT FOR PROFIT DOES NOT EQUAL CHARITY

Before you think of hiring one of these firms: Google! And, remember, just because a company is “not for profit” does not mean they work for free or they are a “charity”. They pay their salaries and all their overhead by charging you. They earn a living, and many of them earn a very good living by charging you money: money that you probably do not have.

In fact, many of the people you speak to are not “do gooders”, they are trained telemarketers who use tried and true high pressure tactics to get you to give them money. sign up for debt management plans. Often, they make six-figure salaries. Of course, this is American and everyone should strive to make as much money as possible, but not on your back or mine.

TO GOOD TO BE TRUE?  MAYBE IT ISN’T TRUE?

So, be very careful, and if you just remember that if it sounds too good to be true, then it is not true. Why would someone be willing to give you a loan if you’re already in financial trouble? Right, they wouldn’t.   Be especially careful when you are told to make one monthly payment to these companies so they can then dole it out to your creditors. Clients come to me after many months, and guess what? The “not for profit” company has taken huge fees and their debt barely has a dent in it.

Please, if you are considering getting involved with one of these debt management companies, do at least two things: run an internet search on them, and call or email me first: I will be happy to advise without obligation or charge.

photo by: ivanpw