Don’t Fall for Debt Relief and Credit Scams

Anyone who promises that you’ll be out of debt or have an increased credit score is likely a scammer. Shutterstock

Most people have some debt. The Federal Reserve Bank of New York reported that in the second quarter of 2024, Americans held $17.80 trillion in debt, of which $1.14 trillion was credit card balances. It’s not a surprise that many people want debt relief.

People want relief so much that they believe it when they’re promised a miracle. But these organizations, with their big promises, are often scams. How do you know the fraudulent companies from the legitimate ones?

Legitimate Debt Relief Companies

Legitimate debt relief companies design programs that will give you relief from debt. One way they do this is by negotiating with your creditors to accept less than the total amount if you agree to pay the negotiated amount. The debt company’s goal is to have your debt discharged for less than you owe.