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Top 3 Credit Card Debt Relief Scams

By Edited Nov 13, 2016 0 0

Credit Card Debt Relief Fraud

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"Credit card debt relief" is such a welcome term when you have unmanageable debt. However, because unscrupulous individuals know that unmanageable debt can cause a person to become desperate, credit card debt relief scams are abundant. If not on guard, you can easily become a victim of credit card relief fraud.

Credit Card Debt Relief and Debt Elimination

Unfortunately, If you have unpaid debt, the only way to eliminate it is to pay it off. Even if you choose to consolidate or settle a debt, you are still required to pay an agreed amount in order for the debt to go away. Some con artists, however, charge consumers thousands of dollars in exchange for a credit card debt elimination program.

While some scammers might charge a hefty upfront fee, others might charge a percentage of your debt. For example, if you owe $15,000 in credit card debt, the debt elimination company could charge a 15 percent service fee to help you eliminate your debt. That means that you would pay more than $1,200 in hopes of finding credit card debt relief.

Such scammers want you to believe that you can eliminate your credit card debt without paying it back.They claim that credit card companies are not legal and charge illegal fees. The claim is that if you purchase and follow their program, your creditors will leave you alone and eliminate your debt because they do not want the public to know that they're working illegally.

The truth is that many consumers' financial troubles have worsened as a result of falling for this type of debt relief scam. Not only could you lose your hard-earned money, you would still have to worry about your unpaid debts. Identity theft is another concern associated with debt elimination scams.

Credit Card Debt Relief and Your Identity

Another form a debt elimination fraud involves companies that promise to eliminate your debt by changing your identity. Beware! Such tactics are illegal. Your debt will not disappear, but you could possibly face legal problems.

Credit Card Debt Relief and Balance Transfer

Another version of the many debt relief scams involves credit card balance transfers. A telemarketer calls you and promises to reduce your credit card debt. The representative explains to you how much you could save with a lower interest rate. Moreover, the telemarketer generally requires an upfront fee of $900 or more in return for his service. Once he debits the fee from your account, he calls your creditor to request a lower interest rate - something that you can do yourself.

The telemarketer may or may not succeed in obtaining a lower interest rate. However, he generally transfers your credit card balance to another credit card without your consent. Likely, you would not even know about the balance transfer until the first statement arrives in the mail.

In such cases, telemarketers misrepresent themselves. They lead you to believe that you are purchasing a debt management program, but in essence, you simply authorize a balance transfer.

Avoiding Credit Card Debt Relief Scams

  • Never give money or provide your personal information to anyone without first researching the company. Search online for fraud or complaints against the company. Contact the Better Business Bureau, and ask about any complaints against the company.
  • Hang up if you receive a call and the telemarketer pressures you to buy a debt elimination or debt reduction program.
  • If you choose to hire a third party to help you obtain credit card debt relief, look for a telephone number and a physical address. Analyze the website. Find out how long the company has been in business. Determine whether the website looks professional. Scammers often set up temporary sites, which might appear unprofessional and contain grammatical errors.

Legitimate Credit Card Debt Relief

You can often find credit card debt relief simply by communicating with your creditors. Most creditors will work with you if you are behind on your payments, but they want to know that you are not ignoring them. Arrange to pay off or settle your debt. The debt will not disappear miraculously; it will require effort on your part. However, you will experience credit card debt relief as you pay off your debts one by one.

Legitimate credit card debt relief requires that you set up and live by a budget. Making a budget can help you keep track of your money, and identify any areas where you might need to cut back.

In summary, finding legitimate credit card debt relief is possible, but you have to be on guard to avoid scams. Remember nver to give anyone access to your checking account. Do not purchase debt elimination plans over the phone. Thoroughly research a company before providing any personal information. Keep in mind that you can often negotiate or consolidate credit card debt on your own, depending on your circumstances. Most importantly, a budget is the most important tool to finding credit card debt relief, as it can help you pay off and stay out of debt.

Copyright © 2011 Ana Jackson. All Rights Reserved. Reproduction in whole or in part constitutes plagiarism, is illegal and strictly prohibited.

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