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All too often you hear of families that are being ripped off by loan modification scammers and debt consolidation companies that make promises but then suddenly disappear. Before working with such a service you need to do a little research. Here are some tips to avoid falling prey to a scammer.

Avoid Debt Consolidation Scammers

  • Be wary of debt settlement companies that make promises of being able to obtain a settlement for much less money than you owe. Companies often misrepresent their success rates.
  • Avoid companies that require you to pay an “up-front” payment.
  • Debt settlement plans will not stop a creditor from charging interest, late fees, or other penalties on outstanding debts. Additionally, a settlement plan will not prevent creditors from bringing a lawsuit against you to collect payment.
  • There are no laws that prevent creditors from seeking less than the owed outstanding balance.
  • Before deciding to work with a debt settlement company, you should check with the Better Business Bureau to obtain a Reliability Report.
  • You might want to try speaking directly to the credit card issuer or other creditor to resolve your outstanding debt.

Working with a Lawyer

An experienced lawyer will be able to help you evaluate your options and consolidate your credit card debt. There are many options besides bankruptcy, and a lawyer will be able to advise you of just what they are and how your specific situation can be helped.

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