Discover Debt Freedom!

Many people around the nation are finding themselves deeply in debt and do not know how to get themselves back on secure financial footing.  As they become more desperate for a solution to their problems, a large number of these people fall for debt elimination scams that promise to eliminate their debt and help them to start anew, but often lead to the person being deeper in debt, sued by their creditors, or even thrown in jail.  Scam artists have become quite savvy at taking advantage of people in dire financial situations, but there are some common indicators that you can look for to determine whether the programs being offered to help you eliminate your debt is a scam.

Scam 1 – Giving You A New Credit Identity
There are a number of companies out there that offer to eliminate a person’s total personal debt by giving the person a new credit identity.  This is typically accomplished by creating a fake social security number and new credit profile for the person.  The company promises that the person will now be able to apply for credit and other types of loans using the new credit profile so that the creditors will not be viewing the person’s bad credit history of the past.

The main problem with this type of scam is that it is very, very illegal.  If you are caught using a made up social security profile to obtain credit under false pretenses, it is considered to be a federal crime and you could be prosecuted and sent to jail.  Obtaining a new credit profile is not worth a felony conviction, jail time, and a potentially ruined life when you are finally released from jail.

Scam 2 – The “This Debt Is Illegal” Ploy
Some of the companies that offer debt elimination services tell their customers that some of the fees that have been charged on the person’s debt are illegal or that there is a fundamental flaw in the credit agreement on the part of the creditor that would make the entire amount of the debt void.  Some of these companies will even go so far as to tell the person that the company has agreed to discharge their debt because of the flaw or that the company has filed a lawsuit on behalf of the customer and for them to stop paying the creditor until the lawsuit has been resolved.

This technique never works because the premise that the company is basing its solution on is not true.  Even if you were able to prove beyond the shadow of a doubt that some of the fees that were charged to the account were in error, you would still owe on the rest of the balance of the account.  People that fall for this type of scam often find themselves much deeper in debt with no legal recourse at a later date or find themselves sued by the creditor for the balance of the account, all related interest payments, and hefty penalty fees for not paying their payments on time.  The person’s credit score will be destroyed and they will not be able to obtain any type of credit account for a very long period of time.