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Free Debt Consolidation
When I think of “Free” anything, I think back to reading about a bookie talking about Las Vegas and lure of “Free money.” He basically asked, “If Vegas is in the business of giving away money, how do the casinos afford to pay for all the pretty lights they have?”
Keep this in mind if you are considering any offer for Free Debt Consolidation. Nothing really is for free.
And if you are at the point where credit charges and fees are mounting while none of the principle is being paid, if you’re at the point where payments are being missed, and if you are at the point where every phone call makes you jump because it is a collection agency (link article here) then you should recognize that you are not an ideal candidate for “free” anything, but rather an ideal candidate for getting taken advantage of. The more vulnerable you feel, the more you should take control of your situation instead of giving it up.
It is tempting to consider writing one check a month rather than eight or twelve. But remember, these companies need to get paid somehow. In some cases the fees will be upfront and you will know exactly what you will be charged. But then it wouldn’t be “Free Debt Consolidation.” Other options are sketchier. Especially when “free” is part of the sales pitch. Interest free credit cards are one of the tools to be considered carefully. Often times the “interest free” period is short and if you had the cash on hand to payoff the debt in the “interest free” period you would be better off doing that on your own. Know what happens if you are late or miss a payment on most “Interest free” credit cards? You get charged interest. And not just on that month or billing period but from the beginning of the consolidation. Now you are even further in the hole.
Those companies are playing on the average consumer failing, and unfortunately the odds are in their favor. Some offers you find online are even shadier, going beyond cynical opportunism into outright fraud. If a stranger passed you on the street and said, “Give me your checkbook and credit cards, I’ll take care of your bills,” would you hand them over or call the cops? Just because a website looks legit doesn’t make it so. And just because a debt consolidator is a “Not-for-profit” entity doesn’t mean it is on the up and up. Non-profits are not subject to the same regulation that for-profit businesses are in this field. Be careful!
That really is the bottom line. The better an offer sounds, the less likely it is to really help you. This isn’t to say that all help in debt relief is a scam. To protect yourself check with both the
National Foundation for Credit Counseling
(http://www.nfcc.org/) and the Association of Independent
Consumer Credit Counseling Agencies
(http://www.aiccca.org/) to make sure the agency you are working with is in good standing. Bankrate.com is another site with loads of information and unbiased calculators to help you get a clear picture of your situation.
Topics: Debt Consolidation |
