Are Debt Relief Companies legit? Well, this question remains unanswered to many people. As much as paying and managing debt can be a pain in the neck, many people still run away from debt companies. This is because of things such as seeking payment upfront. However, debt relief companies can be a lifesaver because they provide helpful services to people with financial difficulties. But are they genuine?
Before digging into details, what are debt relief companies?
Debt relief companies talk on your behalf to convince creditors that you can pay back their debt. Furthermore, they convince them to reduce, settle or cancel your debt. During this period, they advise you to open an account, deposit money, and use it to prove that you can settle the loan.
How to Identify if Debt Relief Companies Are Legitimate?
If you are in search of a firm that will offer legit debt relief services, be sure to check the following tips.
The Company’s Details should match with that of the Creditors
If you are in debt and a company has contacted you to pay the loan. Don’t be in a hurry! Stop and countercheck the details with that of your creditor. If they match, then you are dealing with the right people. If not, be sure that you are dealing with scammers.
Contact a Credit Counselling Agency
Credit counseling firms are non-profit organizations that provide the best debt options. As much as they don’t offer debt relief services, these agencies provide an overview of your credit and free consultation.
Ask About Fees Upfront
Typically, most credit companies cannot offer services without paying upfront. However, some take advantage and overcharge customers. To avoid falling into such a situation, ask for a clear explanation of all the fees charged.
Conduct a Thorough Research
Suppose you are looking for the best company with better debt relief services, conduct thorough research. This act will help you know the history and background of that company.
What are the Risks of Debt Relief Companies?
In a nutshell, most debt relief agencies are indeed real; some scammers pretend to be them to milk money out of you. Here is how to identify scammers.
Payment Upfront
Payment upfront is applicable in most debt relief companies but beware of firms that ask for payment before getting services. Generally, pay upfront only after the company has secured an agreement with your creditors.
Guarantee Results
This is a clear sign of a company that provides fake debt relief services. One thing to note is that these companies don’t guarantee results. If you encounter such words, don’t fall victim.
Contacting You by Phone or Email
Another risk associated with debt relief companies is getting cold-call solicitation. If they try to contact you, report immediately to the relevant authorities.
Advice on Cutting off Communication with Creditors
Lastly, don’t agree when they tell you to stop communicating with your creditors. Since it is a common tactic that scammers use, ask for a genuine reason.
The debt relief industry has tremendously grown, leading to the emergence of debt relief companies. It is a creative way to help people pay debts and avoid bankruptcy. As much as most of them are genuine companies, some are scammers. To avoid being duped by fraudulent companies, don’t go for companies that promise outlandish results, request payment upfront, or conduct cold-call solicitations.
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