An Introduction to Debt Relief Scams

An Introduction to Debt Relief Scams

An Introduction to Debt Relief Scams

Thousands of people encounter unmanageable credit card debt every year and a distressing percentage soon find themselves barely treading water as the account balances continue to climb. Once they've come to terms with the dim chances of ever repaying the loans through traditional means, most embark upon the search for debt relief solutions. There's a diverse industry founded upon the promise of relieving difficult debt dilemmas without the disastrous repercussions of bankruptcy protection. Debt relief's sort of a catch all designation, really. Debt consolidation, debt settlement, and consumer credit counseling companies, to name but a few, would all list themselves as debt relief specialists even though their methods and costs are fundamentally opposed.

Sound baffling? It can be, especially for borrowers new to the situation. Unfortunately, in the midst of all these varying schemes and strategies, unreliable practitioners out to scam the careless and confused continue to devise new tricks. Scavengers who prey upon the desperation of debtors in distress are among the very lowest white collar criminals, and all potential debt relief clients should keep a watchful eye on any prospective company to avoid being caught up in such scams. For this reason, a degree of consumer vigilance and caution should be applied at every step of the debt relief process. In order to ensure a safe and successful debt relief experience, there are certain signs to strictly follow and precautions that must be taken.

Above everything else, it is vitally important to complete a sufficient amount of research and fact finding before enlisting any debt relief company to lower bills on your behalf. Many borrowers begin their quest for debt relief solutions using the internet. The World Wide Web is a fine place to start but consumers should be aware that much of the online information can be extremely biased and often misleading. The surest safeguard you can take to avoid debt relief scams is to check a firm's reputation by consulting local and national watchdog groups. The Federal Trade Commission can provide information about unscrupulous companies, as does the Better Business Bureau. It is also worthwhile to verify histories with your state's Attorney General's office.

Don't make the mistake of providing any of these sources with personal information such as Social Security or credit account numbers. In fact, any sincere and competent debt relief firm will only request the necessary financial data related to your debts (besides credit reports) after an agreement has been struck. Beware of any company offering debt relief help that immediately requests your personal identification numbers it is a sure sign of dishonest business practices. Generally, an agency worthy of trust will be able to provide a quote using only your creditors' names, balances and interest rates.

Finally, asking the right questions during a free consultation will be your last chance to distinguish the legitimate companies from the scammers. Be sure to find out exactly what kind of debt relief service is offered as well as the costs of each. Shady agencies will do their best to avoid providing specifics about services and the associated fees. Others might encourage you to enlist before they have made an assessment of your financial specifics this is a sure sign of shifty intentions. An agency promoting debt relief that expects you to join without first explaining in detail what they intend to do for you is not to be trusted. Avoid any debt relief company that won't eagerly offer free information about their services and spend as long as is necessary to respond to your every concern.

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