Debt Scams

It is sad to think that in this day and age, with so many people suffering from the financial crisis that our country is in that some people would think to prey on those in need. Just as a looter goes in during hurricanes or fires to take what is not theirs, so it goes the way of the debt settlement scammer.

There are many legitimate debt settlement companies out there that will help you work with your creditors to not only help you get a lower balance due, but will also help you set up a payment plan to pay it off. They will review your loans and figure out how much you can realistically expect to pay off and when.

However, debt settlement companies do not work for free. You will pay them a fee for their assistance which is usually a percentage of how much they saved you, how much you owe overall, closing fees, etc. It depends on the company as to how much you will pay.

But there are some debt settlement companies out there that are simply looking to take your money and leave you with the debt. They get service fees out of you before they do any work and then don’t do the work. Or they say that they will pay your bills for you and then pocket the money.

There are many scams out there, so when looking into a debt settlement, debt consolidation, anything financially related – be sure to use a company that you are either familiar with or someone you know has had an experience with them that was positive.


 

 

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