You might be tempted to take on deals that promise you'll be debt-free in less than a year. Or maybe you'll find a financier who's willing to lend you money without even asking for the basic requirements such as your proof of income or your credit score. While these may sound like once-in-a-lifetime deals, it's best to be wary of anything that seems like too good an offer.
Before applying for a debt consolidation loan, do some background research on your lender. Check out their website and look for reviews online. If you come across anything shady, don't risk it. You can also check if the company is registered under ASIC Connect. If you don't find any information on them as either a Credit Registered Person, a Credit Representative or a Credit Licensee, they may be operating illegally. Finty lists only appropriately registered lenders.
Other red flags to watch out for are lenders who skirt the topic of repayments, are vague on the loan term, refuse or stall on providing you with a contract, and badger you to sign an agreement even though you're uncomfortable and have unanswered questions.
