Debt Relief Scam Or Lifeboat

Thousands of Americans are falling into debt problems every day. Maybe its because your home mortgage bill is regularly overdue, leading to higher interest rates, or maybe your credit cards are way behind in their payments. In any case, if you feel like youre drowning under debts youre unable to pay, youve probably started to think about one of the debt relief options advertised seemingly everywhere around the United States. Unfortunately, this also means that youre precisely the target for the many debt relief scams that have also crept up around the industry.

The only real way to secure yourself against debt relief scams is to educate yourself properly about what debt relief entails. When a company promises debt relief, the first thing to do should be to research whether or not they are a legitimate company. Simply check with your states attorney generals office or the Federal Trade Commission (FTC) to see if any complaints have been lodged against the firm in the past few years. The Better Business Bureau (BBB) is also a good resource for finding out whether a company is on the up and up. The BBB carries records of every complaint that has ever been filed against any company, and they keep these records on line for swift perusal via the internet.

Another red flag to watch out for centers on the types of questions that a company might ask about you; debt relief scams often use this information to take out money in your name. They also might ask for very sensitive information such as your Social Security Number, your intimate family information (your mothers maiden name, for example), or even past passwords for banking or e-mail. Any company that asks for data like thisunless you have good reason to believe otherwisemight be trying to steal your money without giving you anything in return.

Identity fraud is probably the most common kind of scam. You should keep in mind that the only information a true debt relief company would ever need is your name, the name of your creditor, and your balance or interest rate. If they insist on getting your social security number or other sensitive personal information before youve agreed to a financial partnership, they may be only be con artists masquerading as a debt relief company.

Finally, be sure to always look out for hidden charges. Any contract that a debt relief company asks you to sign should be intensely scrutinized for fine print cash penalties, monthly administrative fees, or peek-a-boo late-payment interest rate hikes. A lot of companies will offer debt relief to people who are in danger of bankruptcy or home or car foreclosure; many of these companies are reputable and may even have your best interests at heart. At the same time, though, many of these companies are run by scam-happy predators that are just looking to take your hard-earned money and leave you in the lurch.

Always be careful whenever anyone offers you an easy way out. Whether debt consolidation, debt settlement, or other plans are on offer, it is always best to spend the hours necessary to examine the terms of your agreement. Even if the company seems beyond reproach, analyze the details of every debt relief deal you are offered and ask questions if even the smallest item isnt immediately clear. Knowledge can be so vital when attempting debt relief, and a since debt relief company should actively aid you during this process of self education.

You have read the best review article categorized by tax attorney and the title Debt Relief Scam Or Lifeboat. You can bookmark or spread this post by using this URL https://taxattorneytips.blogspot.com/2013/01/debt-relief-scam-or-lifeboat.html. Thank You!