By Joe Palumbo III
I want to advise you, this week, to beware credit and fast cash scams. One scam in particular to watch for is the “advance fee guaranteed loan.” As someone once said, the only thing guaranteed in life is death and taxes. These ads always offer that no matter what your credit looks like (first red light), you will be awarded the loan. Of course, there is always an up-front fee (second red light). Unfortunately, too many people fall into this web of deception and pay the fee of normally several hundred dollars based on the rationale they can always replenish those monies after they get the loan.The reality is these institutions take the up-front fee and then “regret to inform you the loan could not be endorsed, achieved, underwritten, etc., because of your current credit score and outstanding debt.” And you come away in even worse shape than you started, scratching your head saying, “I didn't need them to tell me that.”One last bit to watch for is when you are informed that your rate can be “locked in today.” The individual reviewing your situation (if he or she is a true professional) knows exactly how far you can stretch today or any day in the near future, based on what is presented in front of him or her. Locking in rates are just a predatory form of high pressure sales.So how's business with regard to staying sharp and avoiding quick debt or credit fixes? Remember the adage: “When things appear too good to be true – they usually are.” It's a smoke-filled arena, and where there is smoke, there is usually a fire. Don't be careless and get yourself burned.Joseph J. Palumbo III is the managing director for the Palco Group Inc. The Palco Group deals in asset management, private finance funding, and business consulting. Palumbo can be reached at palcogroup@aol.com or 718-461-8317, 516-297-4034.
