Home > Uncategorized > Beware of quick debt lowering offers

Beware of quick debt lowering offers

“Reduce your debt by 60 percent! Stop collection calls! Be debt free in 12 months!” How many times have you heard this advertisement on the radio or seen it on tv? Everybody is in a little debt these days and to hear something like that is a dream come true to some, give me the number and i’ll call now! But just as manyof us including myself thought that this offer was too good to be true, we were right! Think about it, if you bought a nice brand new tv, went grocery shopping a couple times, got gas a couple times and then went Christmas shopping and put all of this on your credit card. and you went over the limit on the card and then you couldnt pay the minimum payment becasue its too big of a payment to be the minimum and then you go into credit card debt, you hear this advertisement and think that sounds perfect! the big secret behind this whole scam is that if you are in let say $5000 in credit card debt these “offers” charge you interest on the amount of money they take off your debt, let say $3000 usually the interest rates are sky high on the “loan” they give you (the amount they take off your debt) the interest rate they charge is on average 20% so you would end up having to PAY the interest being $600, most debt consolodation companies make you pay that up front! There are a lot of people that are in much higher debt than that so imagine that interest rate! $10,000 is debt you would have to pay $2000 up front!  I am in a little bit of credit card debt myself and spoke to my parents about doing some research on a reputable debt consolodation company until they made me read this article. I was speechless when I read the article, how can those companies do that ethically? It almost sounds illegal what they are doing. I guess now a days everyone is “nickel and diming” but this is insane!

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