Bad Credit? How to Avoid Debt Consolidation Scams

A Credit Article Contributed by Augusta Wilson

Can I Participate in a Debt Consolidation Program, If I Have Bad Credit?

If you have bad credit or a damaged credit history, you are a good candidate for a debt consolidation program. Debt consolidation will allow you to pay off all of your existing credit card loans, and other bills. This option may appear very tempting, especially if you have a bad credit history. While considering consolidating your existing debts is usually a good idea, if you have a poor credit history, you have to make sure that you make the best financial decision, and not get taken advantage of.

The Most Common Debt Consolidation Scams, Aimed at Those with Bad Credit

When it comes to avoiding debt consolidation scams, common sense rules the day. There are many companies out there that thrive on the innocence of their potential clients. For example, some companies may require to be paid in full, before providing their services; quite frankly many such companies have no intention of providing the debt consolidation service, as promised, but just want to take your money.

You should also be very wary of any debt consolidation that tells you not to contact the credit agencies yourself. One of the first actions you should take when thinking about debt consolidation is to request a copy of your credit report. This will give you an accurate starting point, and you will be able to find a loan at a rate which you can afford.

While there are some very good and reputable debt consolidation companies, geared towards those with bad credit, there are many that will give you false information. For example, there are companies which will tell you that you can build - or buy- a new credit identity. This usually entails substituting a employee identification number for a social security number on a credit card or loan application. This practice is strictly illegal.

Are There Any Good Debt Consolidation Programs for Those with Bad Credit?

Sure there are. Millions of Americans choose to consolidate their debts, each year. One great program is 800 Credit Card Debt. In cooperation with financial institutions and debt management agencies, they will help to get your debts under control, during times of financial hardship. Another great program is CrediClear, which works with a network of credit counselors to help you reduce your interest rates.

It believes that a consumer should control the debt- the debt shouldn't control the consumer. The Debt relief network helps those who are $10,000 or more in debt, to take control of their lives. They will help you to avoid the embarrassment of bankruptcy and help you to eventually rebuild your credit.

So, regardless of your credit history, there is a debt consolidation program that is just right for you. Whether you're in debt for $2500 or $25,000, you can find a way to get you life back. It's important to make sure that you