It's estimated that nearly 340 million people share $16.9 trillion in debt, with the average person holding an average of $105,000 across loans, lines of credit, auto purchases, student loans, and personal purchases. Those burdened with debt are often seeking relief and solutions to ease their financial struggles. Unfortunately, scammers are aware of those numbers and are hoping to find a new target for their scam.
By posing as a company or agency that offers debt relief, these scammers allow those in need to come to them. They promise to remove the burden of calling creditors and dealing with the hassle of customer service representatives. By entrusting these scammers with their debt, they are providing them with personal and financial information along with whatever fees are being charged for their assistance.
Debt relief scams often target individuals who are desperate for a solution to their financial woes. These scammers may advertise their services through unsolicited emails, phone calls, or online advertisements. They will offer to negotiate with creditors or erase debt entirely for a hefty fee. They claim to have insider knowledge or special relationships with financial institutions, enticing victims with promises of quick and easy debt relief.
Once the victim agrees to pay the fee, the scammer provides them with fake legal documents that purportedly absolve them of their debt obligations or claim to have convinced creditors to accept significantly reduced payments. These documents may look official and convincing at first glance, but upon closer inspection, they are revealed to be fraudulent and hold no legal weight. If presented to any lender, these documents could imply an attempt at bank fraud - which could result in even more trouble for the individual.
To protect yourself from falling victim to debt relief scams, it's essential to be wary of any offers that seem too good to be true. Remember that legitimate debt relief services typically do not charge upfront fees, and there are no guarantees when it comes to negotiating debt with creditors. Avoid engaging with unsolicited offers or high-pressure sales tactics, and always research any company or individual offering debt relief services before agreeing to their terms.
If you're struggling with debt, consider reaching out to First Northern Credit Union. We have resources and solutions to help assist you with consolidating debt and finding a manageable payment system. We also offer free counseling to ensure you maintain your positive spending habits and avoid falling into debt again. We want all of our members to have healthy and strong financial futures and are available to assist in those matters.