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How to recognize debt settlement scams

| Jun 21, 2018 | Uncategorized |

If you, like many people across North Carolina, are finding it hard to dig your way out of ever-growing debt, you may be considering different debt relief methods while trying to determine what option might be best for you. You may have heard about debt settlement companies, which typically lure you in with promises of paying off your debts while collecting only a portion of what you owe to your creditors.

If the offers these for-profit companies make to help you settle your debt sound too good to be true, however, they may well be, and regrettably, debt settlement scams are not at all uncommon. Sometimes, these companies prey on the fact that you may be feeling helpless when it comes to your finances, and they may utilize aggressive tactics to get you to sign on. They may, too, tell you to stop paying your credit card and other bills immediately, but this is not always a good idea and can end up coming back to bite you. Furthermore, just because a debt settlement company tells you they can settle your debt for a certain percentage of what you owe, your credit card company has no obligation to accept the proposed settlement amount. So, what are some signs of potential debt settlement scams?

Upfront fees

Think twice before signing on with any debt settlement company that charges you fees before it even settles your debt.

Guarantees

Because your credit card company does not have to accept a settlement proposed by a debt settlement agency, be extremely wary of any company that guarantees you it can settle for a given amount or percentage.

Pushiness

Despite what a debt settlement company might tell you, stopping making credit card payments all together can have serious repercussions when it comes to your finances and credit. Unless a debt settlement company makes this clear to you, tread extremely carefully.

Signing on with a debt settlement company is not your only option if you are struggling with overwhelming debt. You may have other, less risky opportunities available to you.