Debt relief scams can leave you in a worse financial spot than you were before you sought debt relief help. When you have massive debt, the last thing you want to do is find yourself trapped deeper in debt. Avoid debt relief scams at all costs by becoming aware of the red flags to look for and the most commonly used tricks. However, if you are struggling with bankruptcy, talk to a Chattanooga bankruptcy lawyer about possible solutions.
COSTS OF DEBT RELIEF SCAMS
You found yourself a company that says they can fix your debt. At last, you have hope after struggling for so long to pay off those massive credit card bills. However, as time passes with debt relief scammers, some people start realizing that the services they were promised are not being fulfilled.
Excuses might be made and after a while, you may not hear back at all from a debt relief scammer. You will not only be making monthly payments to the company, but you will be losing that money and more. Some debt relief companies scam people by saying they will use those monthly payments to pay the debt off faster and for less overall money.
However, these companies end up keeping your money and adding extra expenses, sometimes in the form of hidden fees. Some scammers charge people large upfront fees for the services they claim they will provide. What ends up happening is most of your payments to this company go to the company rather than your creditor.
In the end, you end up spending more money and still owing your massive debt. Your debt may have gone down some, but you likely lost more money in the long run.
HOW TO AVOID DEBT RELIEF SCAMS
You can avoid debt relief scams by looking for red flags and following certain golden rules. Common debt relief scam red flags include:
- Promises to settle all your debt with a specific percentage reduction
- Makes large unrealistic claims like being able to prevent debt lawsuits
- Instructs you to not talk to your creditor
- Charges fees before taking steps to settle your debt
It can be helpful to contact your local Attorney General or do research to find out which debt relief companies have complaints against them. See which debt relief companies are more trustworthy. Ways to avoid debt relief scams include:
- Not paying any fees in advance
- Not signing anything you do not fully understand
- Avoid companies that do not review your financial situation
- Ask questions when you have concerns
Debt relief companies are required to tell you about fees and what working with them will involve. If you are not sure about something, do not hesitate to ask. Be wary of answers that dodge your question.
BANKRUPTCY LAWYER IN CHATTANOOGA, TN
Bankruptcy is not a word anyone likes to hear but might be your last chance at a full recovery. Contact us at Tom Bible Law today at (423) 690-7712 to see what financial options you may have. Our experienced team of Tennessee bankruptcy attorneys is ready to help you explore ways out of your financial situation. You can find us located in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.