A lot of people are anxious facing the pressure of paying back their debts to debt collectors. Fortunately, there is a way: debt consolidation – a process that let someone handle their debts from multiple creditors easier through debt management program. The program can also help in lowering the interest rates and monthly payments.

Unfortunately, there are scammers out there trying to take advantage of your debt anxiety. If you are looking for debt consolidation service online, you must take extra precaution, as there are more scammers online than off line.

Here are 3 things to spot an online debt consolidation scammer:

Large fees, often outrageous

If a company charge you up-front fee before any services provided, beware. Some debt consolidation companies charge $100 only to review your account (a.k.a. “credit analysis.) Some other charge a fee that can be as high as $1,500 (!) for ‘educational program’ – mostly consisting of free letters, forms and info gathered from websites.

Too good to be true promises

“We can help you half your monthly payment!” “We will slash your interest rate down to 0%!” “You are guaranteed to pay less in 2 weeks!” – These are some examples of exaggerated and misleading promises with the purpose to get your business. The truth is, you should expect you will start seeing debt consolidation results in at least one month, and probably longer.

The company is the one contacting you first

Those cold calling you, sending out spam and junk mail are luring you out to take their bait. There is a possibility that all they want is your money, and once they get your money, you’ll be left in the dust with sub-par services. The reputable debt consolidation companies will wait for your contact, not the other way around. Check with the Better Business Bureau to see the companies’ reputation before you contacting them. Also, you should seek recommendations from your friends and family regarding a particular debt consolidation company.

Related posts:

1. Types of Online Debt Consolidation Solutions
2. Online Debt Consolidation Loans : Ease your Burden and Bid Adieu to Multiple Tensions