Maxing out your credit cards in a troubled economy is all too easy, especially when you are forced into using credit for things you never would have thought of before. Perhaps your spouse has accused you of becoming a shopaholic because when the bills come in there are pages and pages of new charges. But in reality all you’re doing is buying groceries, an occasional cup of coffee on the way to work, and maybe even finding the need to pay other bills with a credit card. If you are seriously thinking of some counseling, check out consolidated credit counselling services, but watch out for scams.

Consolidating your credit is just what it sounds like - you consolidate all your bills into one monthly payment. There are pros and cons associated with this process but for many families it’s the only option they have available without filing for bankruptcy.

There are many reliable local non profit agencies that provide this service, and they do it well. However, there are also many scam artists out there who can’t wait to hook up with desperate consumers that will believe anything and sign anything in order to get them back on track. Before getting involved with a company, do as much research on them as possible before committing to them and certainly before you give them any money.

The industry is rife with scams, especially with online companies. Many of these companies have very detailed and professional looking websites making consumers believe these companies offer valid and viable services. They usually have the usual disclaimers, a detailed application form, and even an address and phone number to add to their alleged legitimacy.

But their entire purpose is to do nothing more than get your money. They have you fill out an application, they wait a day or so to get back to you, and most of your communications will probably be via email. You are promised that they will contact your credit card companies to see what they can do, and they then ask you to sign some very legal looking documents which include instructions on where to send your new lower monthly payment, which is to them.

Of course, consumers assume that this money will in turn be distributed to their creditors. However, this never happens because no one ever called your creditors. There is no new lower payment, and your creditors have no idea you are attempting to consolidate your debt.

In a few months you will find that your creditors start calling asking when you plan on paying your overdue bills! When you explain your situation, this is when you are told they have no new agreements with you or any of your representatives.

At this point your creditors have probably either cancelled your credit cards or even increased your APR to unmanageable heights of near 30% or more, in accordance with your original agreements with each lender.

See Further Information on Consolidated Credit Counseling at Consolidated Credit Counseling Info and Consolidated Credit Counseling Services

categories: credit cards,credit,borrowing,loans,budgeting,banks,banking,money,business,home finances,credit counseling,counseling,counselling