Wednesday, March 26, 2008

Debt Consolidation Scam

Choose your debt consolidation companies carefully. There was a recent scam shut down by the government. The company misrepresented itself to clients. Fortunately the government was able to get them to give at least some of the money back.

If you are looking for a debt consolidation company, make sure you find someone who is reputable. Banks are a good place to start. Depending on your situation they may not be able to help you directly, but they should have a good idea of who isn’t trustworthy.

Also consider checking with some of the large churches in your area. Many of the larger churches teach financial management classes and may be able to direct you to a reputable consolidation company in your area. A quick call the the Better Business office should also help steer you clear of any companies who have ripped people off in the past or that others have found difficult to work with.

Remember that there is a lot of money involved in debt consolidation. Even if a company tells you that they are non-profit be wary of everyone’s motives–especially if you don’t personally know others who recommend them.

No comments: