Do Not Fall For Internet Debt Relief Scams
The economy is at an all time low, and the amount of debt that American consumers owe is at an all time high. Perhaps you have been receiving a few calls from the debt collector, or some angry letters from your creditor telling you that you better pay up, and perhaps you’ve turned to the internet and have noticed advertisements claiming to offer you debt relief as a quick fix. These offers may sure seem enticing, but it is crucial to remember that, as real as you may want the claim to be, it is still the internet, and it is important to be on the lookout for the truth behind the claim. For example, some “debt relief” places are simply offering a second mortgage. Of course, in this situation, you are going to want to be cautious. These loans will need your house to use as collateral. A large amount of these debt relief “businesses” are simply charging you to “help” you file for bankruptcy. While it is true that bankruptcy is one way to tackle your financial woes, in most cases it should be seen as a last resort. Claiming bankruptcy is like taking a big red stamp that says “DON’T GIVE ME MONEY” and stamping it on your credit report for the next ten years. Also, your chances of getting employment, a place to live, or insurance are significantly decreased. Before making the choice to file for bankruptcy, it is always a good idea to consider other options. Get on the phone with your creditors. Oftentimes a re-payment plan can be worked out. These re-payment plans have the ability to be modified or paid in installments. Valid, nonprofit credit counseling services are also there to work with you and your creditors to make debt repayment plans. It is true that bankruptcy can stop foreclosures, debt collection activities and rid you of unsecured debts, and exemptions can be provided that allow you to keep certain pieces of property. But personal bankruptcy will not generally absolve you of your fines, taxes, child support, alimony, and student loans. Additionally, a recent change in bankruptcy laws sets up certain hurdles to overcome before you can file for bankruptcy nowadays, no matter what type. Credit counseling from an organization approved by the government is required within six months before filing. Also, in particular instances, you may have to pass a test that requires you to prove that your income doesn’t exceed a set amount. Mallory Megan works for Rapid Recovery Solution and writes articles about medical collection agencies. |