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  1. #1

    Credit Card Debt Elimination Scams: Beware of These Misleading Offers

    "Stuck in credit card debt? Want to get rid of it completely? We can help you quickly and easily eliminate all of your debt. Credit cards, student loans, medical bills, we can discharge them all! No damage to your credit score and no legal fees. Call us today for a free estimate”



    Have you ever seen a pitch like the one above? If you have, hopefully you stayed far away and didn't get roped into a debt elimination scam.

    Why Scammers are Effective in “Luring" You In

    If you’ve ever known someone drowning in debt, you know that they'll try almost anything to fix their financial situation. The mental toll of owing large sums of credit card debt, combined with the stress and worry that you'll damage your credit score, have to file bankruptcy and/or be sued is incredibly overwhelming. As a result, many people with credit card debt are desperate to find a “magic pill” that will help them get back on their feet.

    In some scenarios this yields favorable results. For example, we become motivated to work more hours, start a new side job, or begin a debt snowball. In other scenarios, the fear and frustration of being in debt makes people easy targets for debt elimination scams and schemes. Unfortunately, most people don’t know they’re being scammed until after they’ve paid hundreds (or thousands) of dollars in “fees”.

    How Scammers Contact You

    Scammers can contact you in a number of ways. They reach out to you via direct mail, e-mail, television and/or by phone. They might use fear tactics to try to convince you that being in debt is illegal or that you can be put in jail for not paying your credit card debt (neither is true). Then they make a bunch of false promises about how they can help you consolidate your debt, or completely eliminate it.

    What Scammers Say


    Scammers will promise you the moon and stars. They tell you that they have special connections to debt collection agencies and can help you consolidate or discharge your debt completely. They tell you that they can negotiate special rates and payment plans that you wouldn’t be able to negotiate yourself. Neither claim is true. They tell you just about anything you want to hear to convince you to “sign up”.

    What Scammers Do


    Once you "sign up" they ask you to pay a large fee for their services. They pocket the upfront fee and quickly get to work falsifying documents and making pretend debt settlements. They give you certificates to give to your bank, claiming that the certificate will eliminate your obligation to repay your debts. Unfortunately their debt elimination "plans" are just a bunch of smoke and mirrors and don't actually help you discharge any of your debt.

    How Can You Legally Eliminate Credit Card Debt?


    Depending on the amount of debt you owe and how delinquent your payments are, you have several options. If you’re able to make your payments each month you can explore real debt repayment options like making and following a budget, paying extra money on your debts and using a debt snowball plan.

    If you’re several months behind paying your bills, you may want to ask your credit card company for a settlement. If you can't afford to pay the minimum payments and have no other resources they might make a deal with you. Bottom line-debt elimination is hard and there’s no “easy way out”. Seek the advice of a trained credit counselor or bankruptcy attorney and avoid deals that sound too good to be true.

  2. Credit Card Debt Elimination Scams: Beware of These Misleading Offers
  3. #2
    Registered User Enthusiast
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    I've seen ads for stuff like that and I always thought it was sketchy, glad I didn't do it.

  4. #3
    Registered User Enthusiast
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    69
    I've been tempted by this kind of stuff before but I'm glad I didn't do it as well!

  5. #4
    Quote Originally Posted by byedebt View Post
    I've seen ads for stuff like that and I always thought it was sketchy, glad I didn't do it.
    Me too! Run away as fast as you can. These people are preying on people in a bad situation, it's sad and it's wrong!

  6. #5
    Quote Originally Posted by AnnaR View Post
    I've been tempted by this kind of stuff before but I'm glad I didn't do it as well!
    I'm glad you stayed clear. People who run scams like this should be shut down. It's horribly predatory and basically "kicking you" while you're already "down".

  7. #6
    Registered User Enthusiast
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    69
    Quote Originally Posted by DebtSurvivor View Post
    I'm glad you stayed clear. People who run scams like this should be shut down. It's horribly predatory and basically "kicking you" while you're already "down".
    I hope they do get shut down!

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