This world-wide-web has provided many unique opportunities for commercial interests and, unfortunately, huge opportunities for swindlers to prey on the gullible. This is especially true for debt consolidation scams and the many schemes to fix your credit score. Here are the top 3 debt consolidation scams to stay away from. Before you read further, I apologize if you are insulted by any of this. I really am trying to help you avoid the most common debt consolidation scams and those schemes that promise to magically repair your credit without any work on your part. Here are the three major scams circulating on the web: Pitch #1. "Free Debt Consolidation Services Can Fix Your Credit History." Ask yourself some simple questions: "Why are these companies willing to help me for free?" And, " How can they make any money helping me?" Let me say, that a few of these free or low cost debt consolidation services are not a rip-off. Legitimate services do exist but they are very hard to find. That said, it's always a good idea to take a second look at any offer that seems too good to be true. Remember: Consolidating debt does very little to improve your credit score which should be your ultimate goal. Before you sign up with any company for bad credit debt consolidation, check local organizations right where you live. If you qualify, many churches and community groups will give you all the free help you need. You can even ask your local banker for free advice. Pitch #2. "Fix Your Credit Using Free Government Grants." This one really aggravates me because of my background in the non-profit sector. There are hundreds of scammers who will sell you information about â€free government grants†claiming to get you free government money that you can use to pay your bills, repair credit yourself, and never have to pay it back. Yes, benevolent Uncle Sam is giving away taxpayer money like pacifiers to babies but, I have news, the average Joe or Mary cannot qualify. It’s true that the government gives away billions in grant money but I have yet to hear of an Average Citizen Bad Credit Bailout Fund. Have you? During my working life I was a professional fundraiser for the #1 non-profit organization in the world, The Salvation Army. Take it from me it is not easy to qualify for government grants. Applying for grants was my full time job and I only managed to win one out of every 20 we applied for. Don't be gullible. There is a maze of red tape to wade through. You have to promise to spend the money for a particular and verifiable purpose and the money has to be available from the appropriate agency. In addition, it takes tons of paperwork, including a projected budget, and usually several months for approval. Once approved, which is rare, you will have to give an accounting of how the money was spent - and - prove it! If you commit fraud and use grant money to consolidate your bills you might just win an all expense paid vacation at the Iron Bars Hotel! Pitch #3. â€No Repayment Necessary†The pitch they make is essentially this: "Did you know that banking laws make it illegal to charge interest on borrowed money and that the United States Supreme Court has upheld this with several decisions? This means that you can borrow money, refuse to pay it back, and then retain an attorney to get you out of paying it back because they had no legal right to charge interest on the money in the first place. Would you like to know more? Well, we will give you the secrets for the special one-time-price of just $87.95 for a Limited Time Only!" I included this one simply to give everyone a chuckle. If you can understand a child's storybook then you should be too smart to fall for this. You are? Right? You would be amazed by how many gullible people have fallen for this one. Do you see how outlandish this claim is? Need I say, even if federal law did make it illegal to charge interest, you would still have to pay back the principal. You got their money and they will come after you to get it back. Most debt consolidation swindles and fix credit schemes are pretty transparent because they are aimed at unfortunate folks in financial and emotional distress who will grasp at any straw to save themselves from bankruptcy. In my opinion, these sharks are the worst of the online scammers because they prey upon ignorance, fear, and just plain magical thinking of people.
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