When you find yourself in serious debt issue that need a professional help for guide you out of debt, you most probably will get help from a credit counseling agency. A right credit counseling service can be a financial lifesaver that saves you from debt trap. But, there are so many credit counseling scams around who are looking for an opportunity to make profit from you with giving you any debt help and some they even worsen you debt problem. Hence, you need to smart enough to detect the potential scam signal and avoid yourself from this trap. Here are some red flags signs that you should be aware of for any potential credit counseling scam.
Promises An Easy Out Of Debt
Getting out of debt is rarely to an “easy task”. Although there are ways to effectively manage your debt repayment but it requires a lot of patience and commitment. You need to admit the reality that your debt won’t go away overnight or in short period of time with put enough effort on it. Hence, you should walk away from any credit counseling services that promise you that you will easily walk out from your debt by just enrolling into their program.
The Company Not Interest To Know Your Financial Situation
The question is how can a credit counselor is able to help you if he don’t get to understand first your current financial situation. You must trigger your alert if a credit counselor keeps selling his company’s debt solutions to you without asking you to explain your actual debt situation. Remember, a credit counselor job is to propose to you a debt solution that fit into your financial situation. Hence, he needs to understand first by asking you to explain in detail all your debt issues and where you stand financially before he is able to help you in your debt problem.
Claim To Remove Negative Information From Your Credit Report
Although you can always rebuilt your credit and put your credit ratings back in order but information state in your credit report is never can be removed legally. Hence, any company that claims that it can help you to remove all the negative information such as bankruptcy and other bad records from your credit report, never believe them.
You Are Required To Make “Voluntary” Contributions.
If a contribution is required, then it never is a “Voluntary”. Normally credit counseling agency normally will give free credit counseling to you and they will explain to you what are the fee involve if any on their debt relief program or debt management plan. You have the right to reject the program and no payment should be made if you decide not to sign their program. Just walk away from any credit counseling agency that requires you to pay up front fee.
Insist An Immediate Decision
The rule of thumb, don’t make up your decision until you have interviewed a few credit counseling agencies and review all their plans. You no need to decide at the spot, bring all the information back to your home and reconsider or better discuss with your family to see you have miss anything or any doubt unanswered. Reputable credit counselors will permit you time to evaluate their offer. Don’t take the offer from any credit counseling agency that insists that you need to make an immediate decision.
As you doing your research for a reputable credit counseling agency, always keep a high alert of any potential credit counseling scam signs and avoid yourself from falling into their trap.