Red Flags for Unsecured Credit Card Debt Consolidation Companies
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If you are looking for a company to help you consolidate your unsecured debts, such as credit card debt, then you should preceed with tremendous caution. While there are honest companies who can help you get out of credit card debt, there are also many unsecured credit card debt consolidation companies who are looking to profit off of you without considering your best interest.
How can you decide which companies will legitimately help you and which will potentially leave you worse off and in more debt? Here are a few tips and warning signs to look out for in your quest to consolidate and eliminate your debt.
- The Better Business Bureau. Always, always check with the BBB, and any other organizations that can help you, the consumer, find an agency you can trust. If a company is not affiliated with the BBB, or if it is not in good standing, then be wary. Do your homework and research a company, maybe even google it and see what information you find. Still, don’t automatically discount a company because you find negative information on the web, anyone and everyone can anonymously post disparaging information on the internet, whether it is accurate or not. Try to use sound judgment.
- High Fees or “Vague” Fees. If a company will not clearly and explicitly state their fee structure, you should hear an alarm going off in your head. Ask directly what fees will be charged, and expect a straightforward, honest answer. Also, get an idea of what “reasonable” fees should be, and avoid companies charging excessive fees for consolidation services. If you are already struggling with excessive credit card debt, the last thing you need is excessive fees.
- High Pressure Sales Tactics. You don’t need to be sold or pressured into an unsecured credit card debt consolidation option. If a company or salesperson or “counselor” seems overly aggressive and is giving you a high pressure sales pitch, hang up. You do not need to be “sold” on getting out of debt, so it is likely this salesperson does not have your best interest in mind. Rather, he or she is more likely paid a commission, and has incentive to get your business whether it helps you out or not.
- The Time Test. If you are unsure of what debt option you want to pursue, this test is crucial when getting advice. If a counselor or salesperson is not taking his or her time to learn your individual situation, and/or if they quickly (less than 15 min., or without learning thoroughly about your financial situation) reccomend a particular option, service, or product, you will want to take their advice with a giant grain of salt. Any professional needs to take the time and learn about your unique situation before being able to decide which options will and won’t benefit you. Plus, if they are trying to quickly sell you on an option and get you off the phone, they may be commission based employees (refer to item 3).
- Unrealistic, Too Good to be True Advertising. Most companies need to advertise to attract customers, do simply advertising is not always a bad thing. But just because you see a company advertising frequently, doesn’t mean that company is the best or even good. Plus, many advertisements make outlandish and unrealistic statements about the benefits they offer to you. Ask companies explicitly about their advertised statements and how they apply to you, and be sure to get a straightforward answer. And never get that if something sounds too good to be true, there is a very good chance that it is.
Following this tips can help you avoid making costly mistakes when you begin the process of consolidating and getting out of debt. Be sure to do your homework and look out for red flags when you are dealing with an unsecured credit card debt consolidation agency, and you will be on your to being debt free much faster.
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Debt consolidation companies provide qualified and experienced personnel to guide you. Those who have been struggling to pay monthly payments can hopefully obtain the help they need to get out of debt. Thanks for the article!