The best way to avoid being sucked into any bad credit debt loan scam is to remember this one thing...
So if you don't go looking for them, you won't get scammed. Period. (If you want to learn more about why you should avoid these types of debt loans, please see my article on bad credit debt consolidation loans here.)
Now, if you are still with me and still considering looking for a debt loan, that's OK. First I'm going to show you two potential bad credit debt loan scams you might come across, and then, more importantly, I'm going to show you what you can do, even with bad credit, to get out of debt.
Bad credit? No Problem!
If you have been looking for a bad credit debt loan you have probably seen this "come-on", and others like it. If a company doesn't care about your credit history, or anything about you for that matter, this is almost a sure sign that they could be running an advance fee loan scam.
Here's how the scam works...
Companies "troll" for victims by advertising "Guaranteed Loans... Regardless Of Credit", "We Don't Care About Your Past" and similar come-ons. Unsuspecting victims respond thinking they are going to get a loan or a credit card. The company asks for a up front loan application fee which can range from $25 up to $300 or more. Many people, desperate for a loan and thinking they have no where else to turn, pay the fee.
In the end the application is either rejected or the victim ends up with stored value credit card or a debit card, not a loan. Of course, the company keeps the original fee.
Another prevalent scam is the "list of guaranteed lenders for people with bad credit". For just $15 or $20 you are promised a whole list of lenders who will fall all over themselves to lend you money regardless of your credit history. I'm not sure which is worse, the actually companies that do the scamming, or the unscrupulous people who sell you a list of the companies that will scam you. Probably the list sellers, because if you buy their bad credit debt loan lenders list, chances are you will be scammed twice!
Alternatives? There are many. But they all start with a thorough
examination of your finances, and the preparation of a detailed budget.
In addition you should figure out exactly
how it is that you
ended up with such poor credit in the first place. If you don't take
the time to figure out these things no amount of debt help and no debt loan
will solve your problems.
If you need help with this, I recommend that you seek the assistance
credit counselor. They can help you straighten out your financial
situation, and if necessary recommend program(s) to assist you in
getting out of debt. A credit counseling company won't offer you a bad credit debt loan, but they will
provide something much more powerful. A no-commitment cost savings
estimate in addition to helping you assess your current situation and
getting you on the right path to debt freedom.