Debt consolidation is basically acquiring a single loan in order to pay off all of your debts. This way you are able to get rid of all the messy monthly payments and pay a lower monthly interest compared to what you might have otherwise had to pay. But this does not mean that debt consolidation is one happy fairytale. There are people out there who want to bamboozle you and take your money.

You will probably find many fake online debt consolidation services. It depends upon you whether you find the fake ones the right way or the hard way. Do not panic yet. We are going to help you identify the right ones from the wrong ones: Just remember these three simple tell tale signs.

Astronomical fees

Some companies require $100 only to review your account details, often masked as a “credit analysis. Others suggest an “educational program” composed mainly of free letters, forms and information obtained from various Internet websites. Does this “Education” cost anything? You bet it does; sometimes as high as 1500$. So keep an eye out for online firms which try to push extra hard for prompt payments even before you receive any service.

What is too Good to be True is not True

Promises like “Your monthly payments would be halved compared to what you’re currently paying!” or “Your interest rate will be reduced to zero percent!” or even “Start paying less in just under two weeks!” are simply no true. Such types of inflated promises are intended to entice you and are rarely true. Ask around or at least Google it to find out whether or not it can be true.

None of these firms possess some alchemical panacea to make all financial problems go away overnight. Normally, around a month or longer is required for such changes to take effect.

They Seek you Out

Any uninvited advertisements, email spam, cold calls and junk mails have a company behind them, ready to pounce on an unsuspecting financially stressed individual. Chances are that they are only after you money and even if they seem to offer anything, it has no real worth in nominal terms.

Real companies normally have their work cut out for them and wait for you to contact them, not the other way round. If something feels funny or ‘too good to be true’ ask around or check with some government or non-government agency for a background check. Good luck.