Trying to get out of Debt? Watch Out..!
If you are in debt and looking to reduce your debt, then you are probably looking into a debt consolidation loan. With today's economy, you should be aware that there are many lenders out there trying to help you. Not all of those lenders are honest and above board. Here are some tips to keep your eyes open for some major problems.
1. Watch out for any small, unheard of mortgage company. Many small companies could easily have a problem in this economy. With everything that the banking market has proven you should make sure that the company you work with is reputable and would be safe in obtaining a loan from them.
2. Don't get involved with "Payment in Advance" loan deals. This type of scam can be a problem for the unsuspecting people with bad credit or with no equity in their home. The scam works like this. You will find a lender who will "guarantee" you a loan but needs several months' payments in advance before they can get you the loan. Most often, you will pay the money and then find your lender sitting on a beach somewhere. You will be without a loan and all of the money you have paid in advance.
3. Fee's charged to you for a loan. Most loans will have some fees involved but watch out for any high, hidden or inflated fees. Many times these fees turn out to be money in the pocket of the lender and don't help you in obtaining a loan. If your credit is good, then you really should look into what fees are being charged. The better the credit the less fees you should pay. Fees can be hidden or covered up with fancy names, but make sure you find out what each fee is for and why you are paying it.
4. Watch out for the Eager Lender. If you don't have excellent credit (above 720) then your lender should be a little cautious about providing you with a mortgage. If you find a lender that seems to be able to jump through hoops for you, then take the time to research everything a bit closer. You may have found a super lender, but you might also be heading for trouble.
5. Watch out for the "Bait and Switch" lender. Some lenders will sit down with you and work out numbers for your mortgage. But when you show up to sign the final papers, you will find that the numbers that you discussed are not the numbers that you are signing for now. Some lenders will do this because when you arrive to sign the final papers, you may feel compelled to sign these and not the ones that you negotiated previously.
But what you most want to come out of debt consolidation is the following. You want to solve what debt problems you had. If the loan you are obtaining does not solve your debt problem be aware that you may be putting yourself into a bigger problem that you have now. Once you have resolved your debt issue don't forget to check your credit and do credit repair if necessary.
1. Watch out for any small, unheard of mortgage company. Many small companies could easily have a problem in this economy. With everything that the banking market has proven you should make sure that the company you work with is reputable and would be safe in obtaining a loan from them.
2. Don't get involved with "Payment in Advance" loan deals. This type of scam can be a problem for the unsuspecting people with bad credit or with no equity in their home. The scam works like this. You will find a lender who will "guarantee" you a loan but needs several months' payments in advance before they can get you the loan. Most often, you will pay the money and then find your lender sitting on a beach somewhere. You will be without a loan and all of the money you have paid in advance.
3. Fee's charged to you for a loan. Most loans will have some fees involved but watch out for any high, hidden or inflated fees. Many times these fees turn out to be money in the pocket of the lender and don't help you in obtaining a loan. If your credit is good, then you really should look into what fees are being charged. The better the credit the less fees you should pay. Fees can be hidden or covered up with fancy names, but make sure you find out what each fee is for and why you are paying it.
4. Watch out for the Eager Lender. If you don't have excellent credit (above 720) then your lender should be a little cautious about providing you with a mortgage. If you find a lender that seems to be able to jump through hoops for you, then take the time to research everything a bit closer. You may have found a super lender, but you might also be heading for trouble.
5. Watch out for the "Bait and Switch" lender. Some lenders will sit down with you and work out numbers for your mortgage. But when you show up to sign the final papers, you will find that the numbers that you discussed are not the numbers that you are signing for now. Some lenders will do this because when you arrive to sign the final papers, you may feel compelled to sign these and not the ones that you negotiated previously.
But what you most want to come out of debt consolidation is the following. You want to solve what debt problems you had. If the loan you are obtaining does not solve your debt problem be aware that you may be putting yourself into a bigger problem that you have now. Once you have resolved your debt issue don't forget to check your credit and do credit repair if necessary.