Beware Of Debt Relief Scams
Significant debt can be a giant beast. One that takes huge bites out of your budget and destroys any chance you might have at solid financial wellness. Unfortunately, scammers know this, so they target victims with debt relief scams. Here’s what you need to know about debt relief scams and how to avoid them.
How The Scams Play Out
Debt relief scams target consumers who may have a lot of credit card debt under any or a combo of the following guises:
- Debt repair service to increase their credit score significantly in no time
- Service to remove negative credit report info
- Promise to reduce credit card rates
Desperate to shed debt, the target will pay any price for the promised outcomes. Unfortunately, the scammer fails to deliver as promised, leaving the consumer even deeper in debt.
Red Flags
These red flags can help you identify a debt relief scam:
- If the service guarantees to quickly increase your credit score by a specific number of points.
- They may promise to eliminate factual credit report information on your credit file.
- If they demand up-front payment.
- If they claim to be affiliated with a credit card company, but that company doesn’t recognize the service.
- Or if the service tells you to cut off all communication with creditors.
The Dos and Don’ts Of Credit Repair
If you’re looking for a legitimate credit repair service, these tips can help.
Do:
- Research the service you are considering using. Look for a secure site with a phone number, street address, and positive reviews from past clients.
- If the service claims to be affiliated with a credit card company, give the company a call to verify.
- Ask for a clear explanation of all fees and conditions.
Don’t:
- Never pay an upfront fee for a debt relief service.
- Don’t believe a service guarantees to bring up your score by a certain amount in a specified timeframe.
- And don’t believe services can eliminate negative information on your credit file.
If you’re deep in debt, don’t despair. Let Elevate Credit Union help you get out of debt through our free budget counseling or even a personal loan. Call, click, or stop by today to learn more. If you like this post, make sure to check out our other MoneySmart Tips.