Debt Scams - Avoiding Debt Settlement Scams

By: EconomyWatch   Date: 6 October 2010

About The Author

EconomyWatch

The core Content Team our economy, industry, investing and personal finance reference articles.

EconomyWatch, Content Team

 

  • Dot Div
  •      

Millions of Americans are in credit card debt and looking for a solution. If any online research has been done, you have probably come across a debt settlement company offering to eliminate your debt. While debt settlement companies are legal and reliable resources that may help you rid of your financial burden, there are also plenty of scam companies out there making false promises.

 

Related links
The History of Debt Settlement
Avoiding Debt Settlement Scams
Consolidate Credit Card Debt
Credit Card Debt Relief
Bad debt credit card
Credit Card Debt Settlement
Credit Card Debt Reduction
Credit Card Debt Consolidation
Credit Card Debt Statistics

Debt settlement is a process that is very aggressive in nature and is usually pursued by those with little hope of paying their bills, but want to avoid bankruptcy. A true debt settlement company understands this fact and will not try to sign-up everyone with credit card debt—as it may not be the perfect solution for everyone's financial needs.

A great way to avoid these risks is to really do your research. For example, some organizations may say that they are “non-profit” when they are indeed for-profit. Companies that cannot deliver their promises could cause you to lose hundreds of dollars in fees and put you in worse financial shape than you are currently in.

Tips for avoiding these scams:

  • If it is too good to be true than it probably is--Debt settlement companies can eliminate your debt up to 60 percent, but it takes time, patience, and money.
  • Ask lots of questions—If they do not respond properly, they are either too busy or hiding something, both of which are not good for those looking for a solution.
  • Read everything—Even the fine print, before signing any agreement.
  • Ask for references—Contact success stories and ask what they liked and disliked.

If a debt settlement company involves excessive interest rates, terms, fees, and penalties that are not in the borrowers best interest, than they may be a scam. Real debt settlement companies are experts in creating a solution for you.

Find a credible debt negotiation resource that is able to connect you to reliable financial experts—someone who will not automatically diagnose a solution for you. Upon finding out your unique financial situation they will provide many solutions and chose one that caters to your specific debt situation.

This article has been provided by our partners at

Less.com - Debt Settlement, Debt Negotiation, Debt Relief ... Get out of Debt - Pay Less!

 


  • Dot Div
  •      

Most Popular in Credit Card Guide

Related Links
blog comments powered by Disqus