One of the things that makes people susceptible to the scams we've been talking about is desperation. Let's face it, spending months or even years worried about money can make anybody feel desperate. At DebtStoppers, if there's one thing we've seen over and over again, it's this: desperate people make bad decisions.

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Let's say you have a lot of high interest debt and poor credit. A consolidator wants to lend you enough money to pay off your high interest debt at a lower interest rate. Sounds like the answer to your prayers, right?

But hold on. Ask yourself this: if you owe a lot of money and your credit has suffered, why would anyone want to lend you even more money at a better rate? They wouldn't. So once again, let's all say it together:

If it sounds too good to be true… it probably is!

Basically, debt consolidators have three tried and true ways to turn your desperation into your worst nightmare – up front fees, hidden charges and the bait and switch.

In the money up front scam, they promise you a loan regardless of your credit, but require a processing or administration fee in advance. This fee can be thousands of dollars. You pay the fee, and then either never hear from them again, or they tell you that there was a problem with your loan application. Bottom line: you don't get the loan, they keep the fee.

In the bait and switch scam, they promise one thing, and then at the last moment talk you into accepting something not nearly as good. For example, they promise you the loan at an 8% interest rate, but when you go to sign the loan agreement, they tell you that due to unforeseen circumstances the interest rate is 15%. You're desperate, so you sign the anyway.

The final big scam is hidden charges. We all know that we have to pay interest on the loan, but in some cases the interest rate may be artificially low to make the loan appear more attractive. Then they pile on hidden charges that dramatically increase the cost of the loan.

So here's what you need to remember if you're considering taking out consolidate debt loans:

• Never pay an upfront fee to apply for a loan.
• Make sure that all charges an fees are explained to you in advance so that you can calculate exactly what you are paying.
• Don't agree to any last minute changes and never sign any contract that contains blanks that haven't been filled in.
• If it sounds too good to be true… it probably is.