For millions of us, relief from credit card debt feels unobtainable.
Credit card balances have risen steadily since the pandemic.
But experts say this would be a mistake.
As credit card debt increases, so does the opportunity for scammers to target you.
But many of these companies are offering something they can’t possibly deliver.
If a company’s promises seem too good to be true, they usually are.
Here are 10 warning signs the company you’re looking into may not have your best interests at heart.
“Asking for a lot of money upfront is a huge red flag.”
Companies often use terms like “forgiveness” to capture attention and get you to sign up.
These companies are often debt consolidation or debt settlement companies soliciting you based on certain criteria they’ve researched.
Any debt company that gets right down to payment details likely doesn’t have your best interests at heart.
“A good credit counselor is going to look at the whole picture,” Steele said.
If the company isn’t doing that, you should reconsider.
Your credit score will also plummet.
“I would not counsel anybody that they could receive complete forgiveness,” Tayne said.
Some banks might offerforbearance, which could involve better repayment terms.
If you think a company is legitimate, do your homework.
Look for ratings from reliable platforms like the Better Business Bureau.
But any company telling you this is likely trying to trick you into giving them money.
“There is no government program for credit card debt forgiveness,” said Tayne.
you’re able to also review theFTC’s list of casesagainst companies accused of credit-related scams.
Readmore:Have Scammers Opened a Bank Account in Your Name?
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