Common Debt Relief Scams

Category: Finance.

Persons in debt can benefit greatly with a debt relief program designed specifically for their individual circumstances.

Finding a debt relief program specifically for your needs is important so you can get out of debt in a timely manner. There really is no such thing as the one plan that can help each person because condition and circumstance can vary greatly. In order to avoid face- to- face meetings, whether because of time constraints or the feeling of being embarrassed, many people seek a debt relief program on the internet. First, there is no identification requirement to establish a website or to obtain a domain name. While there are many ethical companies operating online, there are a few things to remember when you are considering a program online. Therefore, anyone with a computer can buy a name and set up a website offering a debt relief program. Unless charges on a credit or debit card are disputed, no one checks the background of internet sites offering a debt relief program and many sites offer no insight as to who is in charge.

Most online advertisers do not require identification for advertisements placed other than the billing information. Common debt relief scams. Promising to reduce personal debt while keeping creditors at bay, they carry out their debt relief scams on those who can least afford to lose their money. Many companies offer debt relief scams looking to take advantage of someone else s misery to make money. Some debt relief scams are outright deceptive, who take money from unsuspecting people and never pay a dime to creditors so that the person is out of money and the creditors are still looking for payments. Names change almost every week and the ones who responsible for these scams do their best to remain anonymous.

They will usually set up a fake storefront or internet portal that vanishes almost as fast as it was started. Normally, debt relief scams will accept payments only in the form of cash or money order and usually refuse debit or credit cards due their tracking capabilities. With some debt relief scams they will actually contact creditors and inform them they are working on your behalf and negotiate lower payments. They push to get the money in cash by saying that with the business they are in dealing in currency allows them to reduce costs as well as keep their service fees as minimum as possible. You will also have the benefit of making one payment to them and in turn they will send payments to your creditors. While your debt is being reduced, the debt relief scam company is getting rich by charging you as much as all of the combined creditors are receiving. However, their service fees can be ridiculously high and sometimes even as high as 50 percent of your monthly payment.

For example, if you have 10 creditors and are paying the scam company$ 200 per month, the company is keeping$ 100 for itself while your creditors are receiving$ 10 each per month. Another of the big debt relief scams involves offering to sell you information about where to go for government grants to get debt relief. Therefore, depending on the total debt amount, it can take a long time to pay off the bills. When you are visiting sites of the US government or state governments, it soon becomes apparent that there is no such thing as a free lunch from the government. The company is selling you a CD and a monthly subscription for you to use the information on the CD to apply for grants that you most likely will not qualify to receive. There are no such things as free government grants to help with your personal debt. Understand who you are dealing with.

Therefore, those companies offering a debt relief program that refuse to give anything other than a PO Box may not be completely honest. Many online companies use a PO Box for mailing purposes to help maintain their personal privacy, but legal companies will not have any problem in supplying a physical address to their potential customers. There should also be contact information readily available on the site, together with a name, and phone number, email address. When you think about it, they are asking you to send money to an unknown person at an unknown location on the promise to provide services. With that information unavailable, you cannot tell who you are doing business with and entering into a debt relief program on blind faith because of what is presented on a web site is definitely not the smartest move. Being unwilling to supply specific information should make you question whether the company can or will provide the service they promise.

Read more...

As With Stocks, Funds Are Subject To Capital Gains Taxes - Nanette Troy about Finance:

If you are new to investing, you may have heard of mutual funds but do not know exactly what they are or how to select the right one.

The Factoring Company Pays You The Invoice Amount In 2 Installments - Cara Hee about Finance:

Factoring is a financial tool, which allows you to immediately get money against your credit sales instead of waiting for it to mature.