Wednesday, January 16, 2008
Credit consolidators and counselors
Who hasn't noticed that it costs more for everything these days? Gas, of course...but even eggs, fresh vegetables ... snow removal .. everything. And you may be one of the many people I talk to everyday who are having money problems, asking about credit consolidators and services.
There are so many scams out there, it's easy to be tricked by great sounding promises made by people who only want your money. So, I have compiled a list of things that should set off the scam artist alert when you are thinking about signing on with someone or thing that calls itself a consolidator.
DON'T PAY A LARGE AMOUNT OF MONEY UP FRONT TO GET STARTED
I don't care why they say you have to; whether they call it an initiation fee, an escrow account..whatever. I call it a rip off and a sure bet that you will lose whatever you give them.
DON'T SIGN ON UNTIL YOU KNOW WHAT IT COSTS
Some companies are so busy making promises about things you want to believe, they don't tell you the ultimate cost. ASK!! And, if they offer a program for "X" number of dollars for "X"number of years, do the math. $10.00 a month may not sound like much .. until you find out it is for the rest of your life. Besides, most legitimate companies charge on a sliding scale...depending on what you can afford. It's not usually a flat fee. And they are usually non-profits, trying to be part of the solution, not the problem!!
DON'T BELIEVE ANYONE PROMISING TO CLEAN UP YOUR CREDIT
They can't. If it's bad, it's bad and, by federal law, will stay bad, on your record, for at least 7 years. Bankruptcies, longer.
DON'T AGREE TO A LOAN FROM A CONSOLIDATOR
They rarely have the best terms and conditions and usually charge usurious fees. If you are considering a personal loan to consolidate your credit, go to your local neighborhood savings and loan institution, or credit union..they have the best rates and will usually do whatever they can to help.
GET HELP LOCALLY
There are several good services in Boston and Cambridge, with satellite offices around the state. (You can find them on-line and in the good old phone book.) You want to be able to actually see the people to whom you are giving all your personal information, money and trust
Finally, if it sounds too good to be true .... call or write to me first.
swornick@hearst.com
There are so many scams out there, it's easy to be tricked by great sounding promises made by people who only want your money. So, I have compiled a list of things that should set off the scam artist alert when you are thinking about signing on with someone or thing that calls itself a consolidator.
DON'T PAY A LARGE AMOUNT OF MONEY UP FRONT TO GET STARTED
I don't care why they say you have to; whether they call it an initiation fee, an escrow account..whatever. I call it a rip off and a sure bet that you will lose whatever you give them.
DON'T SIGN ON UNTIL YOU KNOW WHAT IT COSTS
Some companies are so busy making promises about things you want to believe, they don't tell you the ultimate cost. ASK!! And, if they offer a program for "X" number of dollars for "X"number of years, do the math. $10.00 a month may not sound like much .. until you find out it is for the rest of your life. Besides, most legitimate companies charge on a sliding scale...depending on what you can afford. It's not usually a flat fee. And they are usually non-profits, trying to be part of the solution, not the problem!!
DON'T BELIEVE ANYONE PROMISING TO CLEAN UP YOUR CREDIT
They can't. If it's bad, it's bad and, by federal law, will stay bad, on your record, for at least 7 years. Bankruptcies, longer.
DON'T AGREE TO A LOAN FROM A CONSOLIDATOR
They rarely have the best terms and conditions and usually charge usurious fees. If you are considering a personal loan to consolidate your credit, go to your local neighborhood savings and loan institution, or credit union..they have the best rates and will usually do whatever they can to help.
GET HELP LOCALLY
There are several good services in Boston and Cambridge, with satellite offices around the state. (You can find them on-line and in the good old phone book.) You want to be able to actually see the people to whom you are giving all your personal information, money and trust
Finally, if it sounds too good to be true .... call or write to me first.
swornick@hearst.com
Posted at 12:41 PM by Susan Wornick
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