If you find yourself in debt and you are thinking about contacting a debt consolidator or a debt management company, there are a few things that you should know. First, not all debt consolidators are trustworthy. You will find that some consolidators are more concerned with taking your money than they are with helping you to manage your debt. Second, not all debt consolidators and debt management companies are legitimate. They only use this front to steal identities. When shopping around, use the three signs shown below to determine which debt consolidators you should avoid.

Sign #1: Unusually Low Payment Quotes

To lure trusting customers, shady debt consolidators use one of the oldest tricks in the book: the bait and switch. The debt consolidator starts by quoting unusually low monthly payments. The quotes are so low, that it would seem ridiculous to choose another company. Unfortunately, once you have signed up for the program, the debt consolidator will end up saying that there was some sort of problem or miscalculation and the quote will no longer stand, leaving you with a high monthly payment. When shopping around, use quotes to compare consolidation fees, not monthly payments.

Sign #2: Large Upfront Fees and Deposits

Some debt consolidators request enormous fees or deposits that must be paid upfront. These fees are sometimes in the hundreds, or even thousands, of dollars. Some debt consolidators promise to return the money to you after you have completed the program. Unfortunately, that rarely ever happens. Beware of this common debt consolidation scam.

Sign #3: Personal Information Requests

You should be very wary of a debt consolidator who requests to see your personal information, such as bank account numbers, social security numbers, etc., before providing you with a quote. They could be using this information to commit identity theft. The only thing a debt consolidator needs to provide an accurate quote is your creditor's names, balances, and interest rates.