When you're looking for a bad credit loan one of the things you must be careful of is phony debt counsellors. So, how do you recognize a phony debt counsellor.

There are several things you can look for. Pay close attention to the fees. If the debt counsellor is trying to encourage you into a loan with fees much higher than you can get elsewhere, you need to be suspicious. If the debt counsellor doesn't perform a credit check on you but is willing to make you a loan, then you need to be suspicious. If the debt counsellor works out a plan of consolidating your debts into a single loan with his or her company, and if the long term costs are greater than what you have right now, then you need to be suspicious.

You need to be aware that not everybody who says they can help you are going to be acting in your best interests. There are many who are acting in their own best interest and not yours.