From the latest editorial piece in The NY Times about the new ways in which predatory lenders are taking advantage of debt-ridden people nowadays:
"Predators of every sort have regrouped and returned to their old ways, this time as loan-modification companies, inserting themselves between hard-strapped homeowners and banks, offering to work deals — for cash up front".
I've already received a flyer in the mail from a company, telling me how I should let them loan me money to pay down my credit cards. The APR was anywhere from 7.99% to 20%. So, you're basically creating more debt for yourself just by trying to pay something off. It's robbing Peter to pay Paul, or in this case borrowing from Peter at a high interest rate to pay Paul.
(Via NY Times)
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