Debt is more common than ever before, as the economy and job market hasn’t
been kind to people. We’re all paying for our mistakes right now. Too many have
succumbed to the temptations of easy debt relief. Unscrupulous individuals
trying to lure desperate people into highly questionable debt relief schemes that
involve agreeing to a new loan that helps deal with their debt issues.
Here are some examples of debt relief schemes to avoid:
Predatory Loan Schemes
Watch out for people from debt relief companies that aren’t affiliated with
lending institutions, as they will use false, misleading sales tactics to
coerce you into a high-cost loan, especially if you’re need of fast cash
immediately. Past victims have been forced to refinance their homes as
collateral, and often lose them in a foreclosure after they defaulted on the
Credit Card Repair Schemes
Often, credit card repair schemers promise to erase a victim’s bad credit
history with a quick and easy loan. Under the terms of the agreement, you will
pay massive fees that will be spread over the entire length of the loan. This
method will do very little on lowering your debt. The only steady and
consistent method to repair your bad credit history is making your payments
Mortgage Foreclosure Fraud Schemes
This scheme involves contacting homeowners who are at risk of losing their
homes to foreclosure. They propose a solution to help pay the mortgage by
temporarily having the homeowner “rent” their home from them. To complete the
business transaction, the homeowner will have to “temporarily” transfer
ownership of the home, while a phony housing counselor will help negotiate a
new home loan that does very little in return.
Credit Card Fraud Schemes
Identity thieves can steal your personal information and apply for credit
cards under your name. Identity thief can be costly to fix, and take several
months to repair the damage. Notify your card issuer if you have a lost or
stolen credit card as soon as possible to help limit your losses.
How can you avoid debt relief schemes?
If you’re looking for help, an Orlando
Florida bankruptcy attorney is an excellent starting point. You should
spend some time shopping around before choosing a company to assist you with
debt relief. There are answers to debt problems, but these solutions cannot be
Try working with financial institutions that have been independently
verified as being legitimate companies. They have developed a good working
relationship with creditors that often can help reduce your debt faster.
You can prevent credit card schemes by safeguarding your personal and
financial information. Also, monitor your credit card statements and yearly credit
reports for any signs that someone has stolen your identity.