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9 Good Reasons to Never Trust a Stranger

by Colin McCaig




Ever noticed how many people there seem to be nowadays offering to magically soothe your money woes?

I mean, just look at any TV or newspaper ad and you'll know what i'm talking about...

There seem to be more 'lending' institutions, 'consolidation' companies and 'finance' agencies than you can shake a stick at.

With open arms, they'll welcome you, promising to get that 'debt monkey' off your back for a while...

And you might be tempted.

But the next time you're offered some 'free' and 'helpful' advice by a stranger, here are just 9 good reasons to tread very carefully...

1) These companies want you to be in debt. It's the very reason for their existence. And the longer you are, the better, so they can milk you for every last dime.

Your deceptively low charges simply mean they'll be siphoning interest off you over a longer period of time.

2) Strange as it may seem, it's not great news either for your credit report. The fact that you went to a an agency to sort out your problems can stay on your file for maybe 6-7 years after your original debts have been cleared. So you could have an additional 7 years of financial headaches to look forward to!

3) You've just handed complete control of your own finances over to a total stranger. If you're not handling your own lenders, you've just given them the right legally to make any deal that suits them on your behalf.

4) Regardless of how friendly their adverts may seem, they won't always have your best interests at heart. Any deal worked out between them and your creditors may involve writing you off as a bad debt.

5) There's also the stigma that goes with it...Even if during the course of your repayment period, you pay on the dot every month, future lenders might not see it that way. To many it'll look like you couldn't handle your own finances and had to get someone else to clear up your mess for you.

6) Don't be fooled by some so-called 'non-profit' organizations. Many of these have their salaries and bonuses paid by the very credit card companies to whom you're in debt. Are they really always going to have your best interests at heart?

7) Especially beware of those cheap, tawdry agencies. You know the ones who appear at the back of the daily newspapers. Their interest rates are usually astronomically high!

8)Many of these cheaper companies will have very lax information systems in place. Identity theft is becoming a major consumer worry.

9) Your personal information may be at threat. Notice how many of these companies will ask for all kind of personal details. This can lead to all sorts of hassles, from junk mail from other lending agencies to spam email from companies trying to get you into even deeper debt!

Please, don't touch these companies with a barge pole.

I made the dumb mistake of getting involved with one when I left University.

I was a little more naïve back then and really was amazed at the great settlement they'd managed to negotiate for me. Fifteen pounds a month, it sounded fantastic! Hey...that was an even lower amount than any one of my 5 lenders was asking off me monthly!

Then, a friend with a little more savvy suggested I look at the small print. They were only paying my creditors five pounds and pocketing ten for themselves. Two thirds of the monthly payment! Now if they were offering that, what sort of settlement could I have been negotiating?

So, profit from my stupidity and consider that a spot of D.I.Y. might well be your best policy if you're finances are causing you grief.

By following the above guidelines, you can save yourself a ton of needless heartache.

Copyright © 2004 by Colin McCaig






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