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Debt Consolidation and Elimination Scams
More and more Americans are finding themselves overwhelmed by their debts. Although most of us try to use credit responsibly, blatantly anti-consumer business practices, easily accessible lines of credit, and the rising cost of living make it easy for a few bad choices or an unlucky turn of events to translate into a pile of debt and worry.
Debt scammers count on the debtor's desperation and wishful thinking to shore up their sales pitch, which may promise to save them thousands in interest, reduce their monthly payments, or even eliminate their debts altogether. Some hawk bogus "systems," secret methods that they claim will get you out of debt quicker or easier, or official-looking documents that they claim will eliminate student loans, credit card debt, mortgages and other obligations. Others offer to negotiate with creditors (for a sky-high fee), claiming some special status that allows them to win lower interest rates or easier terms. Still others convince consumers to consolidate all their debts into one monthly payment, which ends up digging them deeper into debt with hidden fees and higher interest rates.
Sadly, victims of debt elimination and debt management scams quickly find themselves in worse shape than before, facing ruined credit, foreclosure, and potential fraud charges to boot - and that's all on top of their original debts.