Smack Debt Consolidation Services

How to avoid debt and credit repair scams?
When your debts get out of order and bills keep pouring it, you may want to talk to a debt consolidation or credit repair company to help you get out of debt. When selecting the right organization to work with, be careful! There are plenty of scams out there, and most of them offer a quick fixes and offer solutions that do not work in practical life.

Debt relief may actually be a bankruptcy filing!
Since debt is a big problem, you may have seen signs posted on bill-boards, newspaper advertisements and television commercials claiming how simple and easy it is to get rid of debt. These ads will promise you debt relief but in most cases, they are promoting bankruptcy. Yes, bankruptcy is one of the options you can turn to when all other options have been ineffective for you. Infact, since your credit report will get damaged for years to come, you will want to consider other options before filing bankruptcy. Bankruptcy will show up on your credit report for 10 years, will impact your ability to get credit, a job or an apartment / home. Needless to say, bankruptcy can cost you money in legal and attorney fees.

Advance-fee loan scam
The advance-fee loan scam revolves around consumers who are having credit problems, bad credit or no credit and are having trouble getting a loan approved from banks and financial institutions. You will be guaranteed a low interest rate when you fill up the application form and an advance fee to the tune of several hundred dollars. Yes, legitimate lenders may also require a fee but will never guarantee a loan in advance.

Credit repair scams
Credit repair scams deceive consumers by offering to repair credit in a snap. These scam artists will promise to create a new identity for you, quickly erase your bad credit even if items are accurate on your credit report. Negative entries if accurate can never be removed from your credit report. You can fix your credit yourself and there is nothing a credit repair firm will do that you can't do yourself. It is a federal law to create a new identity for yourself and to misrepresent or fake your social security number or obtain a employee identification number (EIN) under false pretence. To make matters worst, you may just be entering yourself into a mail fraud or wire transfer fraud if you use your mail, telephone or the internet for any such fraudulent activity. As a golden role, if you are uncomfortable doing it, don't do it.

How to protect yourself from scams?
With a good deal of common sense, you can protect yourself from scams:

• If you intend to work with a company, check it out with your local BBB or a consumer protection agency


• Unless you are very well aware of the company, never give any sensitive information like social security number or credit card information over the phone. If you have received a call, you have to be all the more careful.


• Never pay an advance fee to a company who claims to guarantee a loan or a credit card.


• If you are in need of credit repair, avoid paying up-front fees before services are being rendered.


• Do not work with a scam company who will offer you to create a new identity. If you are not comfortable, simply don't do it or you might make matters worst.
• Ask questions and seek the correct answers. A good number of questions will give you some important clues on selecting the right company to work with.

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