Why Do You Say No To Debt Consolidation Companies?

By Author: J.J. Yong
Total Articles: 963
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Do you know that a debt consolidation loan can be a great danger to the typical consumers? It is not a joke. This loan may not be beneficial to certain debtors. However, it will be a financial risk to them. When you approach the loan providers, many of them will be trying to convince you that this loan is good for you. They will never tell you the truth even they have assessed your financial situation and they know that the loan doesn't suit you.

Here are some important facts you need to remember:

As a consumer, you must be aware that there is possibility for debt consolidation providers to destroy your credit. How can they do that? Some unethical companies put their clients back in debt by stealing their identities right after they have cleared their outstanding. The credit rating of the victims will be badly affected when their personal particulars are being misused.

Some companies even provide their clients with different security numbers. They "guide" the debtors to change their identities in order to avoid debts. They are in fact placing the debtors in an unlawful position. If ...
... you are one of them, you may need to face the lawsuit.

Have you ever thought that you will lose your home if you get trapped by irresponsible loan providers? The possibility is high if you are in the situation as follow. Some firms pretend that they have agreed to provide consolidated loan to their clients. They request their clients to sign the confirmation letters so that they will pay the creditors on behalf of their clients. However, they don't really act on behalf. In this case, the debtors are left with more debts. Their existing debts are not being cleared, yet they have to bear additional new loan. The credit score will definitely be damaged. Moreover, if they fail to pay off their home equity loan, they may even lose their property.
Last but not the least; you are reminded that you will never achieve instant debt elimination through the help of debt consolidation companies. If some so called "professional financial consultants" promise you that they are able to clear all the bad debts off your credit report immediately, just consider they are good actors and actresses. Don't trust them. In United States, it is totally impossible to get rid of debt this way as it is illegal. Make sure that you don't get trapped by blank promises.
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