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Credit Card Debt Consolidation Loans in Georgia

When credit card debt starts to pile up, so does the stress and anxiety that can prevent us from thinking clearly. To a worried consumer, even the most transparent scam can seem like a stroke of good fortune; how much more vulnerable are we, then, to a polished presentation by someone posing as a financial professional?

This is why credit card debt consolidations schemes are so dangerous, and so successful. At DebtStoppers, we want to be sure that you know how to identify — and protect yourself against — scams like these.

In Atlanta, debt consolidation schemes can victimize borrowers

There are several types of debt consolidation schemes, each with its own warning signs, as follows:

  • Up-Front Fee
    In the Up-Front Fee debt consolidation scheme, a lender guarantees a low-interest loan despite your credit problems. There is a sizable fee (sometimes thousands of dollars) to apply, but the lender assures you that the money you'll save on the lower interest rate will pay for the fee in no time.

    Once you pay your fee, however, the lender disappears. If you do find the lender again, you'll be told that there was a problem with your application, possibly a detail that you failed to disclose, and you have been disqualified. The fee, of course, is non-refundable. 

  • Bait and Switch
    The bait and switch is a standard con game. The lender offers you a low rate; when you arrive at the signing, the low rate is no longer available, but the lender assures you that the market has shifted and that any other loan officer would have to give you the higher rate. The hope is that you will accept the substitute because you believe it's the best you can do.
  • Hidden Charges
    Most borrowers focus on the interest rate, which is usually the most expensive part of a loan. A loan consolidator can take advantage of a borrower by offering a deceptively low interest rate, but loading the loan up with hidden fees that drive up your cost.

How to steer clear of loan consolidation scams

To make sure you're getting a legitimate loan and not falling into a trap follow these pointers:

  • Never pay a fee up front with your loan application.
  • Have the lender explain every charge and present you with a total of the costs for the loan.
  • If the lender makes last minute changes to your agreement at the time of signing, tell him you need time to think the new terms over.

Contact Atlanta DebtStoppers for a trustworthy plan to relieve your debt

If you're worried about your finances, you need reliable, honest advice. Get a free consultation and debt evaluation from a qualified and experienced Atlanta attorney. Call DebtStoppers at 404-796-7161 or contact our office online.