The Internal Revenue Service and the Federal Trade Commission sent out another warning last week regarding debt-consolidation scams. Many companies are popping up all over the place promising to help people out of their debt, some can but most can’t and won’t.
You will see signs telling you how they will help you, and many times they offer “Free” services. However, they end up charging high fees instead. Some people look for nonprofits, only to find that the nonprofits are actually making quite a bit of profit for themselves.
The IRS has announced that they will be taking a much tougher stance against the various debt-management agencies, but how is a consumer to know which are the valid companies? One way of knowing is to check with the Better Business Bureau before handing over any money to anyone other than your creditors themselves. There is also the option of doing it yourself, calling each of your creditors and seeing if they will assist you with paying off your debt. You don’t have to get help from an outside company. ■
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