Spotting Debt Settlement Scams

Don’t get “trapped” by offers that are too good to be true
Photo by: John Gardiner (Stock Exchange)

Debt settlement and debt consolidation are becoming popular options for hard-working people who are suffering from a debt burden they cannot shoulder.

Debt settlement involves negotiating with creditors for favorable terms in a good faith effort to pay down debts, leading (ideally) to reduced payment and principal amounts.

Unfortunately, hundreds or even thousands of scammers have hung a shingle claiming “debt settlement” services on the internet. These unscrupulous types not only give legitimate financial professionals a bad name, but provide none of the benefits they promise, leaving customers worse off than when they started.

In this post, we’ll provide some tools for spotting debt settlement scams. (more…)