Advice About Debt – Keep Your Guards Up To these Scams

 

In case you are searching for loans for personal debt you might be usually in a susceptible financial position. In other words, you’re prime targets for scam artists. And there is no shortage of unscrupulous persons looking to take advantage of other peoples financial bad luck.

What are these scams? Well, when it comes to the debt relief industry anything is possible, so keep your guard up. Keep in mind, if it sounds to very good to be true…

Having said that, here are 3 loans for personal debt scams that you must be on the lookout for.

1. The Advance Fee Loan Scam

In case you ever come across a business that is “guaranteeing” you a loan or credit card regardless of your credit, beware. And if they ask for and up front “loan application fee”, run, don’t walk away. You might be most likely dealing with an advance fee loan scam.

These scammers ask for up front fees ranging from $25 to over $300 to ensure that they can “process” your application. What you end up with is either a refused application, or a debit or stored value credit card. In other words, no new loan or credit. And also the application fee? That’s correct, gone.

 

2. The Poor Credit Loan Lender Listing

Yet another preferred scam perpetrated on people in search of loans for personal debt is the bad credit debt lender listing. In other words, an individual or some organization claims to have compiled a list of lenders who are willing to loan money to persons with debt troubles and poor credit. All you have to do is pay for the list. Now, generally it isn’t an exorbitant amount of funds ($25 to $50) but why pay very good funds for a bogus list.

 

3. The ‘Bad Credit, No Problem’ Bait And Switch

This last scam relies on the old “bait and switch” technique to get you locked into a high interest debt loan. And do not be fooled, this trick is utilized by some “reputable” lenders. Here’s how it works.

An ad is placed (ordinarily on the web) that says something like this…

“Low Interest Loans For Personal Debt, Bad Credit No Problem”

And technically these providers aren’t lying. They do offer low interest loans, and they do accept individuals with poor credit. The difficulty is that to be able to qualify for the low interest loans you need to have outstanding credit. In the event you have poor credit, you’ll be able to probably still qualify for a debt loan, it’s just that you will be paying credit-card-like interest rates. In other words 20% and up.

What really should you do then?

Well, first of all remember that borrowing from a new creditor to pay an existing creditor does nothing to eliminate your debt. All you might be performing is shifting your debt around. And in most instances the interest rate on the new debt loan is not much far better than the old debt.

Instead of worrying about a new loan, focus on what you can control, ie. your own finances. Get your self on a budget and stick to it. List your debts from smallest to largest, and pay them off in that order. It will take time but it’s doable.

The budget is the key here. In the event you stick to it you’ll reach your goal of debt freedom. Not swiftly perhaps, but with a great deal of persistence you will get there. And once you do you will have the experience needed to stay out of debt for good.

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