Beware the Quick Credit Fix: Debt Settlement Scams
Companies claiming to offer debt settlement programs have sprung up all across Canada in the last few years. You’ve likely heard one of their ads on the radio…and there’s a good chance you’ve been tempted by their claims. After all, who doesn’t want to save thousands of dollars on debt payments?
Debt Settlement Scams
Before you jump in with both feet, however, you need to know just what you might be getting into.
Debt settlement programs generally work like this:
The idea behind this method is that, if you stop paying them, your creditors will give up hope of collecting. Months or even years later, when the debt settlement company offers them a fraction of what they’re owed, those same creditors will jump at the chance to settle, because some money is better than none. Sounds good so far, right?
But here’s the problem (there are several, actually):
In short, there is no such thing as a quick credit fix. If you’re in over your head financially, the only way to improve your situation is through hard work, dedication, and time—and the only agreement that will be legally binding on your creditors is one such as a consumer proposal made with the help of a certified trustee.
The good news? You, your family, and your finances are worth the effort.
If you have any questions or you’d like to find out more about your options, call or email us today to schedule a free, no obligation consultation: in Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926