Watch Out For Debt Relief Scams
As 2016 draws to a close, debt relief services are already gearing up to provide assistance to those drowning in debt. Overspending on holiday gift giving often puts people over the edge in their financial struggles, and they see the opportunity to regain control over their finances in the New Year. Unfortunately, there are many scams out there that are just waiting to prey upon those who seek fast and easy way out of debt. The truth is, many debt settlement companies do little, if anything, to improve the financial situation of those who are in significant debt.
Debt relief service scams target consumers with significant credit card debt by falsely promising to negotiate with their creditors to settle or reduce consumers’ repayment obligations. While this plan sounds enticing, the scam begins when the service requires a relatively large sum of money up-front for their assistance. Requiring those who are already cash-strapped and significantly in debt to pay up-front is the number one sign of a debt relief scam tactic. What happens in these debt relief scam cases is that the service will take your money but then fail to actually help you settle or lower your debt.
For those who are already facing mounds of debt, it is imperative that you are wise and aware of those preying on your vulnerability. The National Association of Consumer Bankruptcy Attorneys has identified debt relief scams as the “number one threat facing deeply indebted Americans.” Opposite of what they claim, debt relief companies are especially menacing due to the false guidance that they provide to those who seek their help. In fact, the Federal Trade Commission (FTC) estimates that fewer than 10 percent of those who use debt settlement companies receive the desired results. This means that up to 90 percent of those who seek debt relief services are left in worse financial positions than they were originally when they sought help.
At Gingold & Gingold, LLC, we want you to be aware of scams that are out there. Your financial future is important to you and your family, and it needs to be well protected. Rather than falling prey to debt relief scams, filing for bankruptcy is often the best choice for those in significant debt. Bankruptcy is an option that allows many people to find relief from debt and find a fresh start. Consulting with our experienced Georgia bankruptcy attorneys will insure that you choose the appropriate financial path for your future. Contact us today.
Posted on behalf of
1718 Peachtree St NW, #385
Atlanta, GA 30309
Phone: (404) 685-8800