Looking for ways to tackle your credit card debt? Offers promising to slash or eliminate your debt may sound like the perfect fix, but be careful—many shady debt relief companies will take your money and give you little or nothing in return. So how can you find real help and avoid the scammers?
If you’re struggling with payments, start by creating a budget. Use a budgeting worksheet to track your spending and see where you might cut back. If you’re already behind, don’t wait—reach out to your creditors right away. Explain your situation and try to negotiate a more manageable payment plan before things escalate to debt collectors.
To avoid getting caught in debt relief scams, keep an eye out for these red flags:
Never pay upfront fees. It’s usually illegal for debt relief companies to charge you before they’ve done anything to help.
Don’t share personal or financial details with someone who calls out of the blue, offering to “settle” your debts. That’s a huge scam warning.
Be cautious of anyone who guarantees results or claims to have access to a “new government program” for a fee, especially without reviewing your finances.
So, who can you trust? Consider working with a nonprofit credit counseling program to help you manage your money and debt. You can find these services at credit unions, universities, military financial offices, and U.S. Cooperative Extension Service branches. They often offer low-cost services, but always ask about the fees upfront. And of course....you can always call us.
If you suspect a debt relief scam, Tell the FTC at ReportFraud.ftc.gov.
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