Macco Law Group, LLP

How to recognize debt settlement scams

How to recognize debt settlement scams

As a New York resident who feels as if you are drowning in increasingly overwhelming debt, you may be searching for a solution that could help you begin to rebuild your financial life. Regrettably, however, some types of companies tend to pray on people who, like yourself, are struggling to get by, and they may use less-than-ethical tactics to do so. At Macco & Stern, LLP, we understand that many debt settlement companies are out to make a buck, rather than help you get back on your feet, and we have assisted many people facing similar circumstances find alternative solutions that fit their needs.

According to the Federal Trade Commission, most debt settlement companies are for-profit organizations, so you might be wise to second-guess anything their representatives tell you about helping you out. It is also important to recognize that, while a debt settlement agency may tell you they can get rid of your debts for pennies on the dollar, your creditors have absolutely no obligation to agree to a debt settlement agency’s terms.

So, how can you recognize a possible debt settlement scam before it becomes too late? There are certain “red flags” you can look for that may help you identify unethical debt settlement companies. Think twice, for example, before signing on with any agency that wants to charge you upfront fees. Furthermore, be wary of any agency that makes any sort of “guarantee” about paying off your debts, because, again, your creditors do not have to comply with the agency’s demands.

If a debt settlement agency urges you to stop all communications with creditors, this, too, should be a red flag. Why? For starters, failing to keep up with payments can leave you facing considerable late fees and fines, potentially placing you even further into debt, and ignoring your creditors completely can also have a sizable impact on your credit. Find out more about your options by exploring our webpage.