Debt Relief Scams
Posted by: Tina Gold Post date: November 19th, 2009
How to Avoid Debt Relief Scams
It is an unfortunate fact that many Americans are overwhelmed by debt. There are plenty of good people in organizations and companies who willingly offer their helpful services that can show you how you can work your way out of debt but there are also those selfish and cold hearted people who are seeking to take advantage of people in debt. The most important aspect of avoiding debt relief scams is understanding how they work and to look out for the characteristics of such scams. One very important thing to understand is that there is nothing a debt relief company does that you cannot do on your own. Read that again. It is important.
When a debt relief company acts like they can do things for you that would be impossible for you to do on your own, be very cautious and steer clear of them. All debt relief companies will say they can make life easier for you and take the worry off your shoulders but all they do is contact your creditors and ask for reductions of the late payment charges, ask for reductions of the interest rates and fees in exchange for regular and timely monthly payments. You could do this by yourself. They may also contact the credit bureaus on your behalf to dispute entries or request inapplicable entries be removed and once again this is something you could do for yourself. The only reason you may want to use a debt relief agency is because you lack the self confidence to do this or if you don’t have time to call all your creditors, contact the bureaus and mail off all the numerous payments each and every month.
Any scammers who are looking to take advantage of consumers struggling with debt will most likely promise a reduction of your debts but they may even suggest they can eliminate all of your debts. What actually happens is that the scammer gets your money when you make payments to them but they do not send the money on to your creditors. You end up with your credit score getting even worse and the payments have never been made so you are worse off than before. If you have suspicions about a debt relief company you are working with, there is an easy way to find out if they are doing what they promised. Call your creditors and ask them if payments are being made on your account. If they have no records of the payments you have been sending off, you know you’re being scammed.
You shouldn’t be too fearful about this as while there are debt relief scams out there, there are also plenty of legitimate credit counseling agencies and debt relief companies who do provide you with a valuable service. Consumer Credit Counseling is one such nonprofit agency that you can trust when it comes to helping you get out of debt. Check your telephone directory to find out if there is a CCC office in your local area. They work in much the same way as debt relief companies and have a trusted reputation of providing quality services to citizens in debt.
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