${site.data.firmName}${SEMFirmNameAlt}

How can I avoid debt relief scams?

Debt relief services claim to help people facing bankruptcy get current on debt and restore their financial standing. While many of these services can offer assistance, others may be scams to deprive a person from their money for help that never materializes. To help you identify debt relief red flags, the Federal Trade Commission offers the following advice.

Debt management plans and debt settlement programs are two debt relief options. Debt management allows you to reorganize your debt into one convenient payment which will be spread out among your creditors. You must make payments according to the set schedule or run the risk of having your new terms denied. With debt settlement, you hire a company to negotiate a lump sum settlement on your behalf that is lower than what you already owe.

You should look out for red flags when comparing your debt relief options. Even if you’re remitting payment debt relief services you should never be asked for payment up front. You should also be wary of advice suggesting that it’s OK to stop paying creditors or to provide money owed to the debt relief company directly. Both actions can have dire consequences on your finances and leave you responsible or additional debt.

Lastly, any outlandish claims that seem too good to be true usually are. For instance, before you’re privy to a debt management plan you should take classes on responsible financial habits, so you avoid future money issues. If a company seems to be rushing you into a plan, it could signal that your best interests are not a priority. It’s also unlikely that you’ll be able to discharge most of your debt, or that all actions taken against your will suddenly cease.

 

No Comments

Leave a comment
Comment Information
Official Local County Resources
  • Kenton-County
    Kenton County
  • Boone-County
    Boone County
  • Campbell-County
    Campbell County
  • Hamilton-County-State-Of-Ohio
    Hamilton County
  • Clermont-County-State-Of-Ohio
    Clermont County
  • Butler-County-State-Of-Ohio
    Butler County

Contact The Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response
Contact: The Berger Firm
Office Location:

118 W 5th ST
Covington, KY 41011

Phone: 859-479-2920
Fax: 859-431-1003
Covington Law Office Map

Office numbers: