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Avoiding Credit Card Debt Relief

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					Avoiding Credit Card Debt Relief Scams


Benefits of Debt Relief Programs

People with mounting debts can reap major benefit from debt relief
programs. These programs are designed for this specific purpose but
choosing the specific terms of the plans could affect each individual's
financial condition differently. If you wish to free yourself off any
debt, then you must choose a debt relief program that meets your needs.

For instance, debt negotiation is one common debt relief program that
offers benefits to the debtor. It saves money since you will get to pay a
reduced amount from the original amount of debt you owe, it will save you
time as professional debt negotiators will be the one discussing this
debt reduction process on your behalf. If you are able to choose a
reliable and sound debt relief program, most people with debts find
themselves free of debt within two or three years.

Common Scam Techniques

While there are several legitimate debt relief companies available in the
industry, there are a few others who are looking to take advantage of
people's urgency to settle their debts. Like with legitimate debt relief
companies, they offer debtors a promise of the opportunity to become
debt-free. Sadly though, they most often target individuals who are
desperate to find debt relief since they cannot afford to lose their
money.

There are a few common tell-tale signs that the debt relief program you
are dealing with is a scam. Hence, identifying them will help you
recognize whom to trust and whom not to in terms of finding solution for
your debt problems.

Charging to Fix Your Credit Report

There are a few debt relief programs who offer their services of cleaning
out your credit report and any errors with massive fees. This process is
quite intricate, which is the reason why most people often opt to hire
professionals to do it for them. However, you need to be extra careful
with choosing since some of them can be outright deceptive. Another
reason why such claims are considered scam is that you can fix credit
report free of any charge. There are three credit bureaus from which you
can acquire a free copy of your yearly credit report. When you have the
copy, study it for any false information or suspicious transactions.

Loaning To Fix Bad Credit

This particular scam technique affects debtors in two ways. First, you
are charged for a loan that you are not even qualified for to begin with.
Therefore, the money you spend trying to settle the loan is put to waste
since you could have used that trying to settle off your previous credit
card debts. Next, although your creditor makes claim that you have loaned
out money, you never get to receive any money. Worse thing is, these
scams do not provide you with a legitimate company name so they basically
run away with your money while you are left with no way to trace them.

False Identity

This is a sure sign that you are dealing with bogus credit repair
companies. When they ask you to create a new credit identity to attain a
high credit score, then you need to realize that this is a complete
illegal move. Even if you are unfamiliar with legal laws, then everyone
might be aware that creating false identity is a clear violation of law.

Therefore, make it a point to screen out the credit repair company you
are dealing with before you decide to work with them. If you are serious
about getting rid of any credit card debt you currently have, then opting
for illegal means is not the best way to do it. Moreover, being subjected
to scams would cause you money that could have been used to pay off your
credit card debts.

				
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posted:5/29/2012
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