Credit Debt Consolidation
Contributed by Melanie Vannuys
How Can I Avoid Becoming A Victim Of A Credit Card Debt Consolidation Program?
While it's true that many Americans are in over their heads when it comes to debt, most are afraid to use a credit card debt consolidation plan. And is it any wonder why? You can't turn on the television or radio these days without being inundated with screaming ads offering to "eliminate your debt" or "free credit repair." It's true that you should be cautious when it comes to any aspect of your credit, before you decide on debt consolidation, do your homework. Here are a few red flags to watch out for:
Beware of companies that:
* Require payment by cashier's check or money order;
* Require all of your account numbers before giving you a quote;
* Offer many services together instead of one specialty;
* Refuse to send you an agreement through regular mail and require fax only;
* Have you hold or have to call you back to let you know if you're "approved";
* Advise you to include accounts with low interest rates;
* Advise you to include student loans with your consolidation;
* Advise you to include any I.R.S. accounts (I.R.S. accounts must be handled separately by the I.R.S.)
* Quote you a set interest rate for the entire consolidation program instead of for each account;
* Quote you a set payoff time of four years or so many months instead of for each creditor;
* Offer a "cash back reward";
* Quote an unusually low monthly payment if you have gotten higher quotes from other credit card debt consolidation companies;
What Kind Of Questions Should I Ask The Credit Card Debt Consolidation Company?
While there are several things you don't want your consolidation company to offer, there are a few things you want to ask if they DO offer:
1). How are your accounts closed?
2). How do you meet the creditor required minimum?
