Tips for Avoiding Debt Relief Scams

When it comes to debt relief there are certain things you should know and understand prior to pursuing these services. There are many companies that are simply trying to scam you out of money, with no real intention to help your situation. If you are aware of what you should be looking for, you can avoid the scams that are present. First of all, you should know there are certain things that no debt relief agency can promise, and actually deliver on. You should use caution if any of the following requests occur:

  • Wants to charge and collect fees prior to actually settling your debt or entering into a debt management agreement with you.
  • Pressures for contributions to their company, which actually means fees.
  • Talks about new government programs to help you with credit card debt.
  • Guarantees to make all of your unsecured debt simply go away.
  • Suggests that you cease communication with creditors, without relaying the serious consequences that may result.
  • Promises that they can accomplish pennies on the dollar for all of your debts.
  • Requires you to provide personal information for free services, such as information on the services they provide.

Remember, if it sounds too good to be true, it probably is. Debt relief works, however it is not a magic cure that happens with no effort. Some other scams to be aware of include advance fee loans and credit repair clinics.

Advance Fee Loans

These are loans guaranteed by a debt relief company that requires a fee in advance. This fee can be anywhere from a couple hundred dollars, to a couple thousand dollars. You should not explore this option, as many of these programs are illegal.

Credit Repair Clinics

A credit repair clinic is the latest name for companies that are basically preying on consumers with poor credit histories. They make outrageous claims such as cleaning up credit reports for a fee. The fact is that anything these companies can do, you can do yourself. If a negative item is correct, no one can remove it from your credit history.

Instead of running the risk of paying fees to companies that are offering illegitimate or illegal services, you should opt for a family run business who has years of success in the field, such as Be Free Financial. Their services will provide you with real information, answers and debt relief options.

There is nothing scarier than debt collection calls and letters threatening legal action. However, there are options to handle these collection notices. Be Free Financial offers services that are completely legal and will help you achieve financial freedom. There is no reason to risk your financial health with a company simply trying to take more of the money you do not have to spare. Instead, opt for a real offer, such as debt consolidation or debt settlement. This will help you reduce your interest and payment handles into a manageable amount that will still allow you to pay for day to day expenses.

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