What Out for Debt Reduction Scams

Right now, there is a lot of interest in reducing consumer debt. Many people, looking at the recession and looking at their credit card (and other) debt, are concerned about the future. So they are turning to others for help. However, warns MarketWatch, it is important to be wary of these offers from possible scammers:

They hook hard-pressed consumers who have mountains of credit-card debt with media pitches about how they can negotiate deals with creditors for pennies on the dollar. They win folks’ confidence by telling them how the card companies will be happy to take whatever they can get and that they’ve been successful with such deals many times. Then they ask for the payoff, some upfront money that will procure the miraculous services.

It is important to be careful when answering these ads. Sometimes, little is done. Or if it is, the cost is extremely high by the time you are finished paying the fees. In some cases, you become the target of outright scams, with the “service provider” absconding with your upfront payment.

There are legitimate credit counseling agencies that can help you work through your debt problems. You can find more information about credit counseling at the National Foundation for Credit Counseling Web site.

image source: Lester Public Library via Flickr