Avoiding Scams Before Bankruptcy

: Chris Lee Law Firm

  Filed under: Money Management

Fraud

Some of the more popular scams are targeted against people that have had recent financial problems. Names and contact information can be obtained from those that file bankruptcies from court records, foreclosure records, and debt collectors list. These scammers are assuming you will be desperate enough to make bad decisions regarding your credit.

Some lenders offer to help you get back on your feet by using a high rate loan. Sometimes these come in the form and a payday loan, which are relatively easy to obtain. They come with very high-interest rates, fees, and higher rates if you are late on your payments. Sometimes lenders tell you your rate will be reduced if you make payments on time for a year, they rarely follow through and change your rate. These lenders’ offerings to get you back on your feet are relying on you not believing you can get better rates elsewhere. These high-interest rate loans are intended to rip you off.

Paying for Credit Repair

Your credit record cannot be cleaned up by a credit repair agency claiming to wipe it clean. These lies are intended to get you to pay for something that sounds good but can’t really help you. What these agencies do is dispute everything on your credit report in hopes things will be removed. You can do the exact same thing yourself for free. You must have a reason for the dispute, such as you don’t owe them money, or it is an old debt and should be removed.

No Credit Check Lenders

These lenders are looking for people who believe they are too risky to pass a credit check and receive a better rate. These lenders that pretend they do not care about your credit score are looking for borrowers willing to pay the high rates. Just because a lender tells you you are not a good risk and must pay a very high-interest rate to get credit, don’t believe it. Shop around for loans until you find one with reasonable terms.

Remembering the saying “if it sounds too good to be true it often is” can help you avoid some of these scams. Also, checking the Better Business Bureau or online reviews will give you a better view of the company you are considering getting a loan from.

If you have overwhelming debt and need help eliminating your qualifying bills, contact a Fort Worth bankruptcy attorney today.


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