Why you should avoid profit credit consultant?

The first I suggested that you have to avoid the profit advisor. Many of credit advisor are scammed and cheated you. They come in three basic types:

1. Companies that provide a series of seminars that run $100 or more, that told you secret debt elimination.
2. Debt-restructuring companies that charge as much as $2,500 to take over the servicing of your debts.
3. Bankruptcy lawyers who run those tasteful television ads with the blinking graphics saying, “Stop the debt collectors in their tracks!”

The seminar is always told you that they have a secret to eliminate credit card debt but their secrets still basic following.
1. Stop charging and start paying cash.
2. Consolidate your debts to the credit card with the lowest interest rate.
3. Pay more than the monthly minimum on your cards.
4. Try to negotiate a lower interest rate with the credit-card company.
5. Consider a low-interest home equity loan to pay off the high-interest credit card.

You pay $100 for seminar but you receive about $30. The first two: you have to pay cash for reduce your debt, and you should consolidate your debt into the lowest rate. Don’t forget that credit-card companies often charge a fee for consolidation service that can be up to 6 percent of the balance that you will consolidate. You must consider both the lower interest rate benefit and consolidation fee. If not economical, you should don’t do it. I suggested that you should keep only one credit card for your convenience that you don’t carry cash too much when shopping, but don’t use in amount greater than your ability to pay, I usually use checking account that I don’t pay more amount of checking account I have.

The third is paying more than the minimum – that is basic technique more payment, lower cost. But the problem is you don’t have enough money to do so. The next method ‘negotiate lower interest rate’ sometimes works but subject to your credit card companies. The last is try home equity loans which lower rate and tax-deductible. This way also breaks your investment strategies because your homes as asset that will generate future cash flow but you use your asset to financing your credit card debt.

The second type of profit advisor is Private debt-restructuring companies that you pay to take over the whole process of paying off your creditors. They usually take a portion of interest saving that they can reduce as a fee; for the typical debtor, the fee will exceed $1,000 and may be as high as $2,500. This restructuring process can do by yourself and don’t pay more money to credit consultant. Moreover, some credit repair company is scammed which you should avoid.
The last type is the bankruptcy lawyer. I believe that you ever seen them in TV advertising, a smiling bankruptcy lawyer told you to hurry up and declare bankruptcy before the law changes and it becomes too late! So avoid all of these profit advisor type.