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Credit Counseling and Debt Consolidation
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Not every
credit card consolidation debt
counseling service is a legitimate one. Unfortunately there are a
lot of different type of scammers out there advertising themselves as
this service. However what they really are is identity thieves looking
for a way to learn as much about your finances as possible. Offering to
get someone out of debt is a great way to get their Social Security
numbers, their credit card numbers, their bank account numbers and
information that you would normally use for secure transactions (such as
passwords and mother’s maiden names.) That's why
adequate credit debt management
counseling is mandatory.
Less serious but very annoying are the
credit card consolidation debt
counseling experts that offer to settle your debt for pennies on the
dollar. Usually this type of company offers to procure your credit
report for you for a fee and then disappears forever without repairing
your credit as promised. Be wary when looking for
debt credit counseling services.
To avoid this type of scam be wary of any
consumer credit counseling
business or company that tries to obtain your credit report for a
fee. First of all anyone who is not you causes a black mark on your
credit if they make an inquiry into your credit which of course lowers
your overall credit rating. Second of all you don’t need to pay for a
credit report. It is federal law in the United States that you are
entitled to one free credit report a year from the three main agencies –
Transunion, Experian or Equifax.
You should also any avoid credit
card counseling debt service that offers to teach you how to talk
your way out of debt with a lender or how to use ancient laws to
convince a credit bureau to remove negative things from your report.
Needless to say anything like this is useless when it comes to
convincing creditors, lenders and credit bureaus that you shouldn’t have
to pay!
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