 |
Beware and Avoid the Trap of Debt Relief Scams
Author: Cindy Heller  | Posted: 31-03-2008 | Comments: 0 | Views: 50 | Rating: (114)  (?) 
Persons in debt can benefit greatly with a debt relief program designed specifically for their individual circumstances. There really is no such thing as the one plan that can help each person because condition and circumstance can vary greatly. Finding a debt relief program specifically for your needs is important so you can get out of debt in a timely manner.
In order to avoid face-to-face meetings, whether because of time constraints or the feeling of being embarrassed, many people seek a debt relief program on the internet. While there are many ethical companies operating online, there are a few things to remember when you are considering a program online. First, there is no identification requirement to establish a website or to obtain a domain name. Therefore, anyone with a computer can buy a name and set up a website offering a debt relief program.
Most online advertisers do not require identification for advertisements placed other than the billing information. Unless charges on a credit or debit card are disputed, no one checks the background of internet sites offering a debt relief program and many sites offer no insight as to who is in charge.
Common debt relief scams
Many companies offer debt relief scams looking to take advantage of someone else's misery to make money. Promising to reduce personal debt while keeping creditors at bay, they carry out their debt relief scams on those who can least afford to lose their money.
Some debt relief scams are outright deceptive, who take money from unsuspecting people and never pay a dime to creditors so that the person is out of money and the creditors are still looking for payments. They will usually set up a fake storefront or internet portal that vanishes almost as fast as it was started. Names change almost every week and the ones who responsible for these scams do their best to remain anonymous.
Normally, debt relief scams will accept payments only in the form of cash or money order and usually refuse debit or credit cards due their tracking capabilities. They push to get the money in cash by saying that with the business they are in dealing in currency allows them to reduce costs as well as keep their service fees as minimum as possible.
With some debt relief scams they will actually contact creditors and inform them they are working on your behalf and negotiate lower payments. You will also have the benefit of making one payment to them and in turn they will send payments to your creditors. However, their service fees can be ridiculously high and sometimes even as high as 50 percent of your monthly payment.
While your debt is being reduced, the debt relief scam company is getting rich by charging you as much as all of the combined creditors are receiving. For example, if you have 10 creditors and are paying the scam company $200 per month, the company is keeping $100 for itself while your creditors are receiving $10 each per month. Therefore, depending on the total debt amount, it can take a long time to pay off the bills.
Another of the big debt relief scams involves offering to sell you information about where to go for government grants to get debt relief. When you are visiting sites of the US government or state governments, it soon becomes apparent that there is no such thing as a free lunch from the government. There are no such things as free government grants to help with your personal debt. The company is selling you a CD and a monthly subscription for you to use the information on the CD to apply for grants that you most likely will not qualify to receive.
Understand who you are dealing with
Many online companies use a PO Box for mailing purposes to help maintain their personal privacy, but legal companies will not have any problem in supplying a physical address to their potential customers. Therefore, those companies offering a debt relief program that refuse to give anything other than a PO Box may not be completely honest. There should also be contact information readily available on the site, together with a name, email address, and phone number.
With that information unavailable, you cannot tell who you are doing business with and entering into a debt relief program on blind faith because of what is presented on a web site is definitely not the smartest move. When you think about it, they are asking you to send money to an unknown person at an unknown location on the promise to provide services. Being unwilling to supply specific information should make you question whether the company can or will provide the service they promise.
Rate this Article:
Current: 1 / 5 stars - 1 vote(s).
Article Source: http://www.articlesbase.com/finance-articles/beware-and-avoid-the-trap-of-debt-relief-scams-374216.html
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
What You Want to Know about Debt Reduction
By: Cindy Heller | 31/03/2008 | Finance
There are many organizations that will provide you assistance and free you from the suffocating effects of debt. You should remember that they will only provide debt reduction assistance and thus not completely remove your debt immediately.
Some Tools That You Need To Know In Relation With Debt Reduction
By: Cindy Heller | 12/05/2008 | Finance
There are a number of debt reduction services available out there, and if you are a homeowner or a person with a good credit, you will get some extra options. It is possible to get debt relief even if you are struggling with a lot of debt.
What You Should Know When Considering Bankruptcy
By: Cindy Heller | 12/05/2008 | Finance
When it comes to debt relief, knowledge can be a power. Finding quality legal advice is an excellent first step. Professionals that understand the workings of the legal system are the best sources for advice and they can help you to decide whether bankruptcy is the correct option for you and your situation or not.
Important Guide Concerning Credit Card Debt Relief
By: Cindy Heller | 12/05/2008 | Finance
When you want to get out from debt problem, credit card debt relief may be one of the most important steps you can take. Due to the many problems that are associated with credit card debt, finding a way to reduce it should be critical in your effort to become debt free.
Got a Question? Ask.
Ask the community a question about this article:
Q&A Powered by: 
Latest Finance Articles
3 Great Benefits of FX Trading
By: John J Callingham | 20/07/2008
FX trading or foreign exchange trading has become increasingly popular amongst investors today. With an estimated market trade valued in excess of $3.2 trillion the trade in currencies is perhaps, one of the largest as compared to other financial products such as stocks and futures. This increased popularization of foreign...
3 Powerful Benefits of Online Trading For You
By: John J Callingham | 20/07/2008
The popularization of the internet has allowed many people today to use online trading for a variety of financial products. Such financial products include foreign exchange, stocks, options, futures and commodities. The numerous benefits of online trading are a key reason why so many people today choose to participate in...
3 Sure-Fire Ways to Enhance Your Forex Trading Education
By: John J Callingham | 20/07/2008
Forex trading education is in all sense of the word, vital to those who are keen on entering the foreign exchange market. Contrary to what most people think, success in foreign exchange trading is extremely dependent upon one's level of financial literacy, which in turn determines one's ability to make...
The Importance of Trading on a Forex Demo Account
By: John J Callingham | 20/07/2008
A Forex demo account is essentially a practice account allowing investors to use "paper credits" in place of real money when making their trades on the foreign exchange market. In recent years, demo accounts have gained immense popularity following the increased interest towards Forex trading as a form of financial...
Get an Extra Income From Currency Online Trading
By: John J Callingham | 20/07/2008
Currency online trading is fast becoming the investment instrument of choice for many following the diffusion of the internet as a mode of telecommunication to many parts of the world. Indeed, valued at a daily trade turnover in excess of $3.2 trillion, the foreign exchange market where currency trading is...
What Is Currency Trading - Learning The Ropes
By: John J Callingham | 20/07/2008
What is currency trading? This is perhaps one of the most common heard questions, in the light of the recent increase in popularity of foreign exchange trade as a mode of investment. Fuelled by the growth of the internet as a means of telecommunication, the foreign exchange market is the...
The Irresistible Benefits of FX Online Trading
By: John J Callingham | 20/07/2008
In recent times, FX online trading or the trade in foreign exchange over the internet has become immensely popular amongst the general public as a whole. With the availability of cheap, reliable, high speed internet connections, more people are turning to Forex online trading as both a means of investment,...
3 Excellent Benefits of Foreign Currency Exchange Trading
By: John J Callingham | 20/07/2008
Trade volume in foreign currency exchange trading has increased dramatically in recent years. Following the widespread adoption of the internet as a communication device, turnover in trade has exceeded more than $3.2 trillion each day. Yet, to attribute this dramatic increase in trade volume solely to the internet would simply...
More from Cindy Heller
When To Use A Prescription Drug For Yeast Infection
By: Cindy Heller | 19/07/2008 | Diseases and Conditions
A prescription drug for yeast infection is needed to finally kill the fugus causing the infection.
Important Things To Include In Your Retirement Planner
By: Cindy Heller | 19/07/2008 | Personal Finance
It is important for everyone to have a retirement planner. In this article, we're going to discuss some important things that you should consider.
Are There Any Other Names For Yeast Infection?
By: Cindy Heller | 19/07/2008 | Diseases and Conditions
There are other names for a yeast infection. Some of these are "thrush", Candida Albicans, Candidiasis, Candida yeast overgrowth and even Candida Tropicalis.
Is One Dose Yeast Infection Prescription Enough?
By: Cindy Heller | 19/07/2008 | Diseases and Conditions
One dose yeast infection prescription medicines are widely used by women who suffer from Candidiasis or vaginal yeast infection.
How A Retirement Planning Calculator Helps
By: Cindy Heller | 19/07/2008 | Personal Finance
Have you ever thought how a retirement planning calculator could help you? For example, when you get your salary, you are given some information about it, and deductions, too.
What To Choose Concerning Retirement Planning
By: Cindy Heller | 19/07/2008 | Personal Finance
You must know exactly what you want to do in the future when you have to make a decision about retirement planning.
How Can You Help Your Income When Taking Early Retirement?
By: Cindy Heller | 19/07/2008 | Personal Finance
The decision of taking early retirement can bring about different feelings and emotions in the person who decides to embark on this experience.
The Right Age For A Retirement Plan
By: Cindy Heller | 19/07/2008 | Personal Finance
The only factor that people consider about their retirement plan is their retirement age, but they fail to consider other important factors, such as their present age, how long they will live, the investments already made, the benefits that the investments are supposed to yield, and the necessary income to support themselves after they retire.
|
|
Finance 
