Debt Relief Scam

Number 9 way to protect yourself from email scams is to watch out for Debt Relief scams

Clay Douglass

9. Debt Relief
The Bait: Emails touting a way you can consolidate your bills into one monthly payment without borrowing; stop credit harassment, foreclosures, repossessions, tax levies and garnishments; or wipe out your debts.
The Catch: These offers often involve bankruptcy proceedings, but they rarely say so. While bankruptcy is one way to deal with serious financial problems, it's generally considered the option of last resort. The reason: it has a long-term negative impact on your creditworthiness. A bankruptcy stays on your credit report for 10 years, and can hurt your ability to get credit, a job, insurance, or even a place to live. To top it off, you will likely be responsible for attorneys' fees for bankruptcy proceedings.
Your Safety Net: Read between the lines when looking at these emails. Before resorting to bankruptcy, talk with your creditors about arranging a modified payment plan, contact a credit counseling service to help you develop a debt repayment plan, or carefully consider a second mortgage or home equity line of credit. One caution: While a home loan may allow you to consolidate your debt, it also requires your home as collateral. If you can't make the payments, you could lose your home.
Forward debt relief offers to spam@uce.gov.