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Debt Consolidation Companies: Common Pitfalls to Avoid
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Debt Consolidation Loans: Avoid Online Scams

Online Debt Consolidation Loans Companies.

You've probably heard the advertisements on the radio or seen them on the television or in the newspaper:

Be Debt Free in just Days.
Easy Debt Consolidation Loans.
Erase your Debt Now!

Whether known as "Online Debt Consolidation Loans Companies" or "Online Debt Consolidation Financing Companies" or "Online Debt Consolidation Mortgage Companies", they are all part of a relatively new type of online debt consolidation network. And they are Hot.

Recent popularity.

Millions of Americans have a wallet full of credit cards--plus expensive personal loans, auto loans, second mortgages and more. They're tired of paying 15%, 21%, 29% and more on credit cards, auto loans, personal loans and other types of credit. With a debt consolidation loan people can wipe the slate clean and start over. A debt consolidation loan can lower your interest rate, combine all your accounts into just one convenient monthly payment and give you some extra breathing room in your budget. In many cases you can net an extra $300, $400, $500 or more per month just by consolidating your debt at a lower interest rate. You'll save money now - and at tax time too (be sure to consult your tax advisor for specific laws in your area.)

How they work.

Most of the online debt consolidation loans companies work something like this:

• You fill out a brief 1 or 2 page online form. This can normally be done in just a few minutes.
• The online debt consolidation loan company sends this form to its network of banks.
• You receive back a return email. This contains the best offers from the network of banks.
• You select the loan offer you like best (normally the one with the lowest interest rate).

It is really that easy. If you like any of the offers you just reply to the email, indicating which offer you want to accept or to request more information. And all of this costs you nothing! There should never be an application fee.

Not all debt consolidation loans are the same.

There are 3 bits of information about your loan that are very important:

Amount Financed: The amount of credit provided to you. This will normally be the amount of the loan you will receive from the lender.

Finance Charge: The dollar amount the loan will cost you. This is the interest you will pay on the loan.

Total Payments: The total amount you will have paid after you have made all payments as scheduled.

These figures can vary wildly between lenders. You should treat these debt consolidation offers as you would a new car ... shop around for the best deal! Someone looking to secure a great debt consolidation loan should fill out applications for several different Online Home Mortgage Refinance Companies, and then accept the one with the lowest interest rate. Why pay more than you have to?

Debt consolidation loans at your fingertips.

It used to be that to get quotes to consolidate your debt you had to go to several banks and sit in a lobby with many others. Fortunately this is no longer the case. There are now entire online companies that exist solely to administer these loans. Now the entire process can be completed quickly and easily from the privacy of your computer.

Fraudulent websites & Potential Pitfalls.

Unfortunately, as with any innovative idea come the scammers. Hundreds of "debt consolidation loans" websites have popped up, claiming to offer the best deals. Many charge excessive interest rates for even the smallest of loans. Other problems are:

1. Charging application fees (NEVER pay a fee to apply)
2. Excessive loan fees
3. Hidden charges
4. Zero help or customer service

Many of these SCAM sites won't even respond to customer requests. Eventually they get shut down due to too many complaints, or the State Attorney General forces them out of business. But the borrower is already locked into a bad deal, and the SCAMMERS just open another site under a different name in a different state. It's definitely "buyer beware".

Yes, your house can get you out of crippling debt!

If you can stay away from the SCAM websites, getting a debt consolidation loan online through one of these companies can be a great way to get the best possible deal with the least amount of work.

Before applying online for a debt consolidation loan, you should be sure that the website satisfies the following minimum requirements:

• Well organized, easy to navigate sites.
• Helpful resources available for newcomers.
• Short application form that can be completed in minutes.
• No application fees.
• No obligation.
• No hidden charges.
• Bad credit not a problem.


About the Author: John Lee is owner and publisher of the acclaimed consumer reporting website WorldWideReviews. A free product review and watchdog service. Debt Consolidation Loans http://moneyemployment.worldwidereviews.com/DebtConsolidationRefinance.htm

Source: www.isnare.com

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