Credit Loan > Debt Consolidation > Debt Consolidation to Cut Payments in Half

Predators Seek to Swindle Borrowers

Modern snake oil salesmen are keeping the time honored tradition alive and kicking. In fact, business is booming for these bottom feeders, because they can prey on those that are fearful in these tough economic times. Minds clouded by fear do not always make the best decisions, and if presented with an attractive offer, no matter how unlikely, they just might take it. Single parents and the elderly are favorite targets. Someone who has never been behind on payments before can also be particularly vulnerable.

These predators will tell you how everything is going to be OK, and ply you with all kinds of success stories about how they have helped to get their clients out of debt. They will ensure you that they are only in business to help people, and can solve all your problems... for a small fee. Some of these fraudulent services may charge fees that even exceed the debt in question if it is $2,000 or less, or if the debt is more, say $10,000, they may charge as much as $2,500. Neither of those are good deals. But, deals like this may be tempting if presented with the promise to reduce your debt payments by half. This may be possible, but only within a very narrow range of circumstances.

But, how do you know who to trust when looking for answers about debt consolidation? Here are a few resources to draw upon to find credit counselors that can provide credible advice:

U.S. Department of Justice (DOJ) maintains a list of approved credit counselors for your area at:

www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

U.S. Department of Housing and Urban Development (HUD) has a list of approved counselors at:

www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

National Foundation for Credit Counseling (NFCC) provides credit education and resources for debt advice at:

www.debtadvice.org

Credit counselors referred by these organizations can help you to determine if you really need debt consolidation and explore the other options open to you. If you need debt consolidation, then debt consolidators and those offering debt management plans referred by these organizations can help you to construct a real and cost effective plan for managing your debt.