If you have found yourself buried in credit card or other debts you most likely have thought about getting a debt consolidation loan.
For many people these loans are truly the answer to getting financially back on their feet.
However, you will need to be careful when it comes to searching for the right loan.
Unfortunately, there are scammers out there in the debt consolidation loan industry.
You will want to be cautious to ensure that you do not get taken advantage of.
Let's take a look at some of the red flags to determine if a company is legitimate.
One scam that is becoming more and more popular is to ask for payments up front, before your loan has actually been secured.
Once you pay the company this upfront payment, they take the money and run.
You will most likely never hear from them again.
Therefore, never give anyone money until your loan is approved and you have all the conditions in writing.
Another scam you might run into when searching for a debt consolidation loan is a company that tells you they can approve your loan without checking your credit score.
If you have bad credit you might be fooled into this deal.
No legitimate company would ever lend you money without first checking your credit.
Do not do business with a company that offers this.
A final scam to be on the lookout for involves wiring money.
If you are asked to wire money refuse to do it.
Wired money is very hard to trace and you will most likely never see it again.
There are of course some simple things you can do to avoid being scammed when looking for a debt consolidation loan.
First, ask for referrals.
Second, Make sure the company has a good reputation and has been in business for a decent amount of time.
Third, choose a company that is nationally accredited.
You may also want to see if the company you are planning to work with is registered with the Better Business Bureau and check their record.
If you take these steps you will avoid being scammed.