The ‘transforming debt into wealth scam’ has been hitting the headlines for quite some time now. Debt consolidators responsible for assisting people with their debts are not as honest as they seem to be. Continue reading to find out a few things that could be of help to you.
Credit card debt solutions companies are those companies that promise to erase your indebtedness in an instant. What they do as debt consolidators is that they speak to all your current creditors and make an arrangement to pay off your debts with them. However, this is a favor for a favor kind of situation. Therefore, it is expected of you to pay the debt consolidation company the money that you previously owed your different creditors since such a company would have paid off your debts for you. The really awesome thing about them is that you will not have hordes of credit companies breathing down your neck, that’s the beauty of it all.
However, this arrangement will not reap any monetary rewards for them if your debts remain the same. It is for this reason that most of these companies charge you high interest rates, debt servicing fees and other charges that might not be readily visible. People seeking these services are thus advised to read the terms and conditions carefully before committing to such a contractual arrangement. It is normal to jump past these terms of conditions in a desperate attempt to erase stressful debts, but be careful.
In a lot of instances such solutions can actually further damage your already ruined credit score. The Credit Bureau, upon discovering your switch to such solutions, will immediately reduce your credit score because they realize that you are not in fact handling your indebtedness but that some other company is doing it for you.
But if you simply wish to get a quick fix then this is the way to go. There is no real reason to prolong credit payments when you know you can’t pay.