There’s a saying that if it seems too good to be true, it probably is. That rubric certainly applies to the scammers proliferating online consumer debt relief. Many of these predatory companies promise debt relief and credit repair yet fail to assist financially vulnerable consumers.
Scammers prey on desperate people frantically seeking solutions to their money crises. But debtors should beware because they can end up in worse situations than they currently experience.
Spotting the scammers
These companies typically promise more than they could ever deliver. They may tell you that if you pay them $1,500, they can get your creditors to accept a lesser amount to wipe out the debt. But they can’t guarantee a third party will agree to debt settlement of less than the full amount.
Should I try to work with my creditors myself?
Sure! Debtors can always negotiate with their creditors on their own free of charge. How successful the outcome will be varies considerably. It’s worth a try, as it doesn’t cost you anything.
But I have so many creditors!
That’s understandable. Many Tennessee consumers get frustrated with the complex process of organizing their total debt load. That’s what these shady companies count on.
Agents at debt reduction companies make misleading promises to get you to pay their fees. Meanwhile, your debt still accrues and your credit score tanks.
When bankruptcy is a better option
Sometimes all you need is a fresh slate and the knowledge of how to avoid these crises in the future. That’s what a Chapter 7 bankruptcy can do for many Memphis residents.
If your debt has become unmanageable, don’t waste time and money on credit repair and debt reduction services that may only be scams. Learn more about your options for filing your bankruptcy petition.