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The Trouble with Identifying Debt Relief Scams

Any American who pays even the slightest bit of attention to television commercials or newspaper advertisements – not to mention the many direct mail inserts that seem to daily flutter through the mailbox – has likely seen his or her share of debt relief offers that seem to good to be true.

Debt Relief ScamCertainly, the demands of the marketplace mean that the majority of the nationally renowned debt relief companies are legitimate without question. Of course, simply because the debt relief agencies (and the agency representatives) are not willfully fraudulent does not mean that the very nature of their approach to debt relief won’t end up rather different than the client originally thought.

It’s so very important that you ask questions from the moment you begin talking to a debt relief counselor about the smallest guidelines of their debt relief philosophy so that you’re not accidentally misled. Even though the debt relief professionals genuinely believe in the effectiveness of their own company’s system, that still doesn’t guarantee it’ll be the right fit for your particular circumstance.

Traditionally, when it comes to debt relief scams, most of the consumers who’ve previously fallen for one of the less than trustworthy efforts have one of three common complaints that absolutely must be avoided:

  1. The supposed debt relief strategy actually created more unsecured debt than had formerly existed
  2. Despite sky high monetary expenses, the debt relief firm did less than nothing to aid the situation.
  3. Whether or not the debt relief agency did an effective job reducing the financial burdens, the client’s credit scores were seriously damaged

Now, to an extent, the criticisms of specific debt relief methods could just come down to the customer’s faulty recognition of what the debt relief programs represent. It should seem obvious to any adult that a debt relief plan seeking to lower the monthly payments, the interest rates, the amount of unsecured debt-loads, or all of the above will feature some comparatively less favorable consequences for the borrower alongside. However, since so many of the debt relief counselors (even the ones that work for technically non profit organizations) are paid primarily by the amount of business that they bring in to the company, they’re hardly going to stress the disadvantages of their program.

Also, remember, most of these debt relief professionals truly think their approach would be the best bet for erasing credit card balances regardless of the surrounding household circumstances. As a result, even if they know that the mandatory minimum monthly payments required under one strategy may be a bit of a stretch for one consumer’s income, they might push forward the debt relief payment schedule anyway in the hope that a bit of budgetary discipline’s what needed. Similarly, although they realize that their method of debt relief will wreak havoc upon FICO scores for up to a decade while closing accounts as a part of the process, some specialists might well believe that their clients could do with less capacity for thoughtless spending.

You could hardly accuse these debt relief professionals of scamming their customers, but neither did they take the needs and interests of their clientele seriously. For this reason, even if the company seems thoroughly above board, it’s always a good idea to ask a particular debt relief agent for recent recommendations so that you’ll make sure the debt relief offered will be just what you wish.


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