Are you someone who is considering professional debt relief in order to get back a firm grip on your distressed financial state? If answered yes, you should be aware of the market scams that are victimizing the people and are preying on the trust of the consumers. With the increase in the consumer credit card debt, the debt relief companies are also on the rise and with the gaining momentum of the debt relief companies; there is a simultaneous rise in the number of scam artists who are waiting to run away with the money of the debtors. If you too are about to hit the debt relief industry, reconsider your decision after you educate yourself on the different scams that you might be subject to.
- Debt consolidation scams: Debt consolidation can either be done through a debt consolidation program or by taking out a debt consolidation loan. When you seek help of a debt consolidation program, you should check whether or not the company is registered with the BBB. There are many debt consolidation companies that aren’t registered with the BBB or the Better Business Bureau and yet they claim to be authentic companies waiting to offer their services to the people. But this is far from being true. Check their certificate before signing the deal.
- The fee structure of the companies: Although the professional debt relief companies will certainly charge a high fee structure as they’re working on your behalf and helping you get back on the right financial track, yet you should not work with a company that is charging an exorbitant fee structure. Shop around and check the fees that are being offered by some companies so that you can sense any kind of scam by checking the amount earned.
- The advance fee of the for-profit companies: The FTC or the Federal Trade Commission has passed a new set of rules for all the debt relief companies where it prohibits the debt relief companies from charging any kind of advance fees before reducing a certain portion from the debt burden. If you come across a debt settlement company that charges you such fees before checking your current finances, you should report to the FTC.
- A company that doesn’t disclose all information: When you opt for credit card debt settlement, you will hurt your credit score as you’re not repaying the entire amount that you owe. There will be companies that will try to hide this information so as to bring you into their business. You should avoid working with such companies that hide information for the sake of making profits.
Therefore, when you’re wondering about the ways in which you can successfully complete debt elimination, consider the scams mentioned above. Don’t make the mistake of working with a scam company as this will aggravate your financial problems instead of alleviating them. Manage your finances, follow a budget and stop using your credit cards even while you go through professional debt relief.