Be Aware of the Dangers

Predatory companies:
In every walk of life, there are always people out there who try to cash in on other peoples misfortune. Debt consolidation is not excepted. Because of a few companies, this industry has received so much bad press that some have repackaged themselves as "debt negotiation" companies or "debt settlement" companies. Be careful as these predatory companies are as bad as their previous incarnations as debt consolidation companies if not worse. Some even use tactics that are not legal including misrepresentation. For more information as to why, follow this link for an example.

Careful of who you give your private information to:
There are some companies out there that do not consolidate or finance your debt. They are like brokers to the debt consolidation industry. They will take your information and they might try and get you the best deal possible or maybe just any deal. To them, your information is just a lead to given to any company who would pay for it. Actually this is pretty common, because so many companies have such bad reputations that they do not do any of their own direct advertising.

Under Investigation:
Many debt consolidation companies have lately been in the legal spotlight. They are being investigated / charged by numerous agencies including the FTC and the IRS for among other things, their supposed "non-profit" status. Be vigilant and protect yourself. Check out any company before you do business with them. Contact your local consumer protection agency and the Better Business Bureau in the company's jurisdiction. Remember that a good rating from the BBB just means a lack of complaints and not an endorsement so keep digging.

Last but certainly not least:
The states of Florida and Maryland do not regulate this type of consumer service including debt consolidation. Be extremely careful with any company doing business out of these states.