Chapter 4. How do I avoid debt settlement and debt elimination scams?

The last thing you want to happen is to fall victim to fraudulent debt negotiators. Then, how can you avoid debt settlement and debt elimination scams? 

 

How to

The Federal Trade Commission offer the following warning signs for identifying fraudulent debt negotiators.

1. They will promise they can reduce your debt to the point that you're paying pennies on the dollar for what you actually owe.
2. They will promise that some of your debt will be eliminated entirely.
3. They tell clients that unsecured creditors do not sue debtors for non-payment.
4. They promise to remove negative information from your credit report.

 

Practice

Now that you know how to identify fraudulent debt negotiators, think of paying it forward and discuss your findings with a friend or a family member.

 

Congratulations! You can move on to Chapter 5. What should be my last resort for debt relief?

To review the full module on Debt Management, click here.