How to Avoid Debt Relief Scams
The unfortunate fact of the matter is that many Americans are in overwhelming debt. There are certainly plenty of organizations and companies who offer helpful services that allow you to work your way out of debt. However, there are also those seeking to take advantage of people in debt. The key to avoiding debt relief scams is to understand how they work and the characteristics of such scams. The very first thing you should know is that there is nothing a debt relief company does that you cannot do on your own.
If a debt relief company acts like they can do things for you that are impossible for you to do on your own, steer clear. All debt relief companies do is contact your creditors and ask for a reduction in late charges, interest rates or fees in exchange for timely monthly payments. You can do this by yourself. They may also contact the credit bureaus on your behalf to dispute entries or request inapplicable entries be removed. This is also something you can do on your own. The only reason you may want to use a debt relief agency is if you don’t have time to call all your creditors, contact the bureaus and mail off numerous payments each month.
Scammers looking to take advantage of consumers in debt may promise a reduction or elimination of your debt. What actually happens is that the scammer gets your money and your credit gets even worse. If you are suspicious about a debt relief company you are working with, there is an easy way to find out if they are doing what they promised. You simply call your creditors and ask them if payments are being made on your account. If there are no records of the appropriate payments, you know you’re being scammed.
The good news is that although there are debt relief scams out there, there are also plenty of legitimate credit counseling agencies and debt relief companies who actually provide a valuable service. Consumer Credit Counseling is a 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.
