We’ve all seen commercials and ads that promise to eliminate our debt quickly and easily. With around 14 million people in America owing more than $1,000 in medical debt, those offers can be pretty tempting but they could actually be debt relief scams.
If you start digging into these “amazing offers,” they start to look less amazing because often they charge a fee to “help” you, usually before they will do anything for you. This is where people often lose money instead of gaining assistance. How can your patients avoid debt relief scams that will leave them even deeper in debt? The FTC recently released a consumer alert with tips on how to avoid these debt relief scams while still paying down their debt.
Avoiding Debt Relief Scams
It can be difficult at times to decide if a debt relief program is legitimate. Guarantees and absolutes are a red flag. Below are a few tips to keep in mind when it comes to debt relief scams:
- Never pay in advance: Organizations that are trying to help you won’t insist on payment before they settle your debt or place you in a debt management plan.
- Get it in writing – and understand it: Legitimate organizations will be happy to put your action plan on paper, so everyone knows what to expect. It’s also important that you understand how the plan works and how it will affect your credit before you sign.
- Knowing your rights: The FTC put together an article about where to look for assistance and to learn more on your options and rights when you find yourself in debt.
Helping Yourself
Avoid the debt relief scams by taking control of your situation and doing the work yourself. Remember, a lot of what legitimate debt relief organizations will do are things you can do yourself.
- Getting a better understanding of your household budget is important. Use a worksheet like the one from the FTC to stay organized.
- If budgeting feels above your head, consider a credit counselor or agency as they may take away some pain. A good credit counselor will help you create a budget and repayment plan that reduces the stress and anxiety you’re feeling.
- Take the initiative and call companies that you owe money to. Working with them and explaining your situation may help. If you’ve already been sent to collections with a company like Americollect, speak with them to get a plan started.
Conclusion
Dodging debt relief scams is highly important. No matter what a credit repair company promises you, know that they are unable to legally remove negative information from your credit if it’s correct and current. There are steps you can take to improve your credit over time, including not taking on new debt and paying your bills on time, but just remember that if a credit repair company is promising the world, it’s too good to be true.
Ridiculously Nice Legal Disclaimer
The content provided in this communication (“Content”) is presented for educational and general reference purposes only. Americollect, LLC and/or AmeriEBO LLC either directly or indirectly through speakers, independent contractors, or employees (collectively referred to as “Americollect”) is providing this Content as a courtesy to be used for informational purposes only. The Contents are not intended to serve as legal or other advice. Americollect does not represent or warrant that the Content is accurate, complete, or current for any specific or particular purpose or application. This information is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. By using the Content in any way, whether or not authorized, the user assumes all risk and hereby releases Americollect from any liability associated with the Content.