As many Tennessee residents can attest, credit card debt can create an overwhelming burden on the lives of those under its strain. Many people find themselves avoiding possibly necessary expenses, such as medical care, in order to focus their money on decreasing their debt. Unable to take the stress of their debt any longer, those with significant credit card debt often turn to debt management programs that offer quick and easy solutions. Unfortunately, not all of these programs can provide the services they claim.
Fraud can come in various forms including companies offering products that do not perform the services they claim. Some of the most common fraudulent programs include weight loss products, prize promotions, and credit repair. When it comes to debt relief and management programs, those with credit card debt are offered services that in the end do little or nothing to reduce a person's debt. Some of these programs can seem so convincing that people have been taken advantage of multiple times.
The consequences of falling victim to scams such as dishonest credit card relief programs can be crippling. Many of these so-called companies obtain credit card information from those seeking help and can in-turn run up more debt. These fraudulent programs also make offers to settle debts with creditors without following through, leaving the victim in a worse situation as their debt increases by paying for services without any results.
The abundance of debt relief scams make finding help for stressful financial situations difficult. Trusting those businesses that claim effective debt management and relief can become almost as daunting as the debt itself. However, turning to bankruptcy can be an effective option. Bankruptcy can help ease the financial burdens by giving those consumed by credit card debt a fresh financial start. Seeking information about different types of bankruptcy and bankruptcy laws in Tennessee could be the beginning of a road to debt relief.
Source: Fox Business, "FTC Fraud Survey: 1 in 10 Americans Adults Swindled," Martin Merzer, May 15, 2013