When considering debt restructuring, many people deal with credit repair and debt repayment scams in Houston. In our article, “How to Deal with Credit Card Debt and Consolidation“, we discussed several methods of dealing with credit card debt. Some options include working with another company. When working with a company, there are certain considerations that can help you find a company you can trust, and avoid any headaches from companies that are not really out to help you.

Beware of any debt counseling company that does any of the following:

  • Charges you high up-front or monthly fees to enroll in a debt-management plan
  • Pressures you to make “donations” for their services
  • Tries to enroll you in a DMP without first really looking at your situation, reviewing your bills and budget, or educating you about basic money management skills
  • Demands that you make payments to a DMP BEFORE the credit card companies have accepted you into a program
  • pressure you into a plan or make any guarantees without looking into your specific needs

Avoid anyone who cannot:

  • Put in writing what they are promising to do to help you
  • Provide referrals of people they have helped

Who doesn’t want to believe that their debts will disappear after they complete three easy steps? People who are concerned and confused about their debt situation pose exceptionally tempting prey to scammers. Many cons are as simple as companies asking for payment up front and not delivering on the loan.

Checklist to avoid credit repair debt repayment scams when working with a company:

  • Keep a close watch on your statements and call the creditors to ensure they receive payments.
  • Research the company and the services it offers. It is better if it offers a wide range of options and education on how to handle debt. (It also can’t hurt to look up companies on the Better Business Bureau.)
  • Contact your creditors and ask them if they will work with the company.
  • Read the fine print: Make sure to review the agreement closely, ensuring that it outlines the finance company’s plans and its timeframe.
  • Before you start paying the finance company, ensure that your creditors have accepted the company’s proposed plan. Until they do, be sure to continue paying your bills as usual.

While Big State Home Buyer’s speciality is buying houses quickly, we realize that credit repair and debt repayment scams in Houston is jet one of the many topics that home sellers, home owners, and many other people deal with. One of the services Big State Home Buyers provides is creating practical information, like this article, that will empower people.

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