Debt restructuring, with the help of a legitimate company, can be a great way to eliminate your debts quickly and increase your credit score in a short period of time. Unfortunately, in recent years there has been a dramatic increase in the number of debt resolution companies who take advantage of trusting consumers. Some of these so called professional companies have even been known to drag the consumer unknowingly into illegal activities that could result in jail time.
How to Spot Fake Debt Resolution Companies
Just because a company seems to offer good debt management programs, does not mean that they are legitimate. You should always be on the lookout for services that are trying to take advantage of your unfortunate position. Common warning signs of fake debt restructuring companies include:
o Asking you for money up front. A legitimate debt management company will never ask you for money in advance.
o Failing to give you information on your rights as a consumer. A good debt management company will explain your credit management rights in detail.
o Not detailing their various debt management programs. If a business can’t tell you in detail how each of their programs iva hk or services work, then they are more than likely an illegitimate company.
o Trying to convince you to create a new credit file. Some imposter companies will try and get you to sign up for an EIN and use that instead of your social security number for credit, but this is illegal.
Choosing a Legitimate Debt Restructuring Company
There are ways to recognize fake companies, but there are also ways to go about choosing legitimate ones as well. If you find yourself drowning in debt and needing help with credit management, then you should not hesitate to seek out a reputable business that can help you meet your financial goals. Below are some of the ways you can go about locating such a company.
o Look for company reviews online, ask friends or family members for referrals, or check the company’s record with the Better Business Bureau. Doing these things can help you ensure that the debt management company you are considering is upstanding.
o Search for a business that has a clear outline and plan of action for managing your debt. If a company is upfront about their particular debt management programs, they are less likely to be a scam.
o Always choose a company that does not require payment upfront for their services.
The warning signs above can help you spot a fake debt resolution company right away. They can also help you decide which companies would be best to restructure your debt. Using caution when choosing a business to help you with credit and debt management is one of the best things you can do to ensure that you are not taken advantage of and put in an even worse situation. Seeking the help of a professional is a wise idea when you are dealing with financial issues that you do not fully grasp; but you could save yourself a lot of trouble and money by making sure that you choose a reputable company to work with.