Chicago Bankruptcy Attorneys Caution Against Consolidation Loan Scams
When my credit debt was at its highest, I encountered a very interesting phenomenon. It seemed as if I was getting more credit and loan offers - and some at better rates - than ever before. It just didn't make sense - why would anyone rather lend money to a person with a history of inability to pay?
The DebtStoppers attorneys in Chicago and Atlanta finally helped me figure it out - they're scams!
All of these offers had something in common. Many were coming from debt consolidation companies promising low rates and no credit requirements in exchange for upfront payment. Anytime someone wants payment before providing a service, it should raise a red flag. Why? Because after you provide the upfront money, the debt consolidation lenders do one of two things: they either disappear or they tell you that there was a problem with the loan at the last minute -- it's not going through, and your payment is nonrefundable.
Then there are the hidden charges. Rates on a debt consolidation loan might look low initially, but the companies sets them artificially low because they know they're going to pump them up with hidden fees along the way. A little extra here, a little more there - they hope that you won't notice how much you're paying until it's too late. Or that you're so desperate that you won't care! Sometimes they don't even bother with hidden fees - they simply wait until the last minute and tell you that something happened and now your rate is going to be 12% instead of 6%.
So how can you tell a trustworthy company from a fraud?
Repeat after me: "If it looks too good to be true, it probably is." Even the best ways out of debt take effort - but they're worth it because they work. Take bankruptcy, for instance. Your debt won't disappear like magic. Instead, you will need to gather up your financial information, file paperwork and work out a plan for debt repayment and/or discharge. But here's the good news. You don't have to do it by yourself - our job is to make the process easier for you.
At DebtStoppers, you won't find any upfront payments. We will always answer your questions for free. We'll provide you with the information you need to make decisions about your debt through a variety of FREE sources - our community workshop meetings, this blog, our website and our Financial Toolkit. Fill out our free one-on-one debt analysis form online at any time to set up a complimentary meeting with one of our professional bankruptcy attorneys. Our attorneys realize that debt isn't just about the money, it's about the toll it takes on your life. Scams complicate your life - we're here to help make it easier.