(Victor Valley) – With the downturn in the economy many families found themselves in difficult situations. Job loss or hours cut, the cost of food and gas going up, and other factors have contributed to many facing a financial crisis and possibly having trouble repaying their debt.
Knowing what you are dealing with helps take some of the stress out of dealing with debt. Here is some key information that you should know:
Debt Collection – If you are behind in paying your bills, you can expect to hear from a debt collector. A debt collector is someone, other than the creditor, who regularly collects debts owed to someone else. Lawyers who collect debts on a regular basis are considered debt collectors, too.
Debt Relief Services – If you’ve maxed out your credit cards and don’t know how you’re going to pay off your debts, you may think that a company that promises to erase the debt for pennies on the dollar is the answer to your prayers. Not true! Debt negotiation can be risky, and it can have serious, long-term consequences for your credit report and your ability to get credit in the future.
Credit Repair – Every day, companies target people who have poor credit histories with promises to clean up their credit reports so they can get a car loan, a home mortgage, insurance, or even a job – after paying a fee for the service. The truth is that no one can remove accurate negative information from your credit report. It’s illegal.
Advance Fee Loans – If you’re looking for a loan or credit card but don’t think you’ll qualify – or if you’ve been turned down by a bank because of your credit history – you may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. Should you apply, you’ll likely find out that you have to pay a fee just for the promise of the loan. Best to ignore these ads or sites.
If you have to pay a fee for the promise of a loan or credit card, you’re dealing with a scam artist. More than likely, you’ll get just an application for a credit card, a stored value or debit card, or a card that has so many strings attached, it’s practically worthless.
Vehicle Repossession – If you’re like most people, you rely on your vehicle to get you where you need to go – and when you need to go – whether it’s to work, school, the grocery store, or the soccer field. But if you’re late with your car payments, or in some states, if you don’t have adequate auto insurance, your vehicle could be taken away from you.
For more information visit the FTC’s Money Matters website.