Avoid Debt Relief Scams

We see it everywhere. Companies are guaranteeing that they will lower your monthly payments or even eliminate your debt all together. It sounds good, especially to those struggling to pay their bills. But is it too good to be true? Yes. The Federal Trade Commission has sued more than a dozen debt relief companies for outright lying to consumers.

You must beware of scam artists. These opportunists are looking to make a quick buck off those in dire financial straits. They will waste the time and money of those who buy into their promises, and have no intention of delivering results. Hundreds of dollars will be lost before the client becomes suspicious, and by that time late fees and penalties have piled up, making their financial situation worse.

Be wary of phone calls from debt management agencies who promise to lower interest rates with your creditors. They may claim to save you thousands of dollars within weeks for an up-front fee. There is no way of knowing who the person on the other end of the phone is, or if they are legit. But their claims will be fantastic. They will offer exactly what you have been hoping for.

Do not proceed with anyone before visiting ModernDebtRelief.com. Modern Debt Relief does a background check on every service provider before adding them to their network. The companies are reputable and offer valuable services to Modern Debt Relief members at a discount rate.

Don’t Pay Referral Fees
Some agencies may charge you a “referral fee” to point you to a company that will help you. Do not pay them. There are resources online to help you locate a reputable agency.

Credit Counseling vs. Debt Settlement
Credit counselors assess your financial situation and work out a plan of action to manage debt. Sometimes they will not take you on as a client, but give you a plan to work out your situation alone. A debt settlement company promises to negotiate a one-time settlement with all of your creditors to lower your principal 50 - 70 %. A lower principal will lower your payments.

While debt settlement sounds more attractive as a “quick fix” it is virtually impossible to accomplish. Do not fall for this scheme. Anyone who promises to lower your principal on all of your debt is lying. Walk away. Legitimate credit counseling is a much better option, and may actually relief the burden of your debt.

The initial credit counseling assessment should be free. Do not pay up front for this. If it is decided that you qualify for their services, they will come up with a customized plan to pay off your debt within 3-5 years. You write the company a check and they distribute the payments to your creditors.

Work With a Clear Head
You may be suffocating with debt and this will cause you to panic and make rash, uncalculated choices. This is understandable, but may lead to disaster. Take a deep breath and do your homework. The advertisements you see on TV or hear on the phone or radio may sound great, but be skeptical. Join Modern Debt Relief for free and gain access to qualified professionals who can help you to not only relieve your debt, but to earn income! Membership also includes access to resources such as articles, blogs, videos, training, and forums. Did I mention this is FREE? Save your money and your sanity and sign up for an account here.