Being drowned in a number of debts you are unable to pay is definitely not a situation any person would like to be in. It is such a situation where expenses have surged up, business is facing a loss, savings are almost gone, and the interest rate is increasing with each passing day. Furthermore, there is also the risk of your credit rating suffering, which can cause even more troubles in the end.
The situation is definitely a stressful one; however, there are many companies out there in Canada that take advantage of people facing such difficult situations. As they are looking for desperate situations to get out of such a situation, they become prey to the clever tactics of such companies, typically known as debt relief scam companies. They make false promises and claims such as your debts will be reduced within a matter of few days and you will lead a debt-free life.
How to Identify Debt Relief Scammers?
Falling prey to the tactics of such companies is similar to inviting even more troubles as they will land you in more tough and daunting situations. If you want to avoid falling prey to debt relief scams in Canada, all you have to do is follow the handy tips explained below. Have a look at them.
Check for Reviews
The first thing, before getting in touch with a debt relief company, in order to avoid a scam is to check for their reviews. You can find these reviews on different platforms on the internet. However, make sure you understand the difference between real and planted reviews. If the reviews are outright positive or 5-star with no customer experience mentioned, chances are that they are fake.
Ask for Records
A company indulging in debt relief frauds will make false claims to lure in the people dealing with debt issues. In order to validate whether their claims are true or not, inquire about the previous work they have done. Ask them for the records of cases they have solved. This will help you evaluate their status in a better way.
Take Help of the Internet
In order to know whether a company is a scam or not, you can take help of the internet. Visit their website, social media pages, and check how they interact with their customers. Furthermore, you must also check what their existing and past customers have to say about their services. In case their online presence has limited or no activity, you need to stay away from such a company.
Inquire about the Procedure
Ask them about the procedure they follow or the solution they will provide to alleviate the stress of debts on you. Make sure you are aware of the complete process to ensure there is no risk of fraud or scam.
Know the Realities
You need to understand that the situations you are going through are daunting. However, you must be aware of the realities of your debts to avoid falling for the false claims of scammers. For example, if they claim to completely eliminate the loans, it is a false claim as it is not practically possible. Hence, you must be aware of the realities related to the loans you have taken and the possible options available.
Study about the Scams
It is important to be aware of what types of scams companies in Canada use to lure in people. You must be aware of all of them. This awareness will come in handy when dealing with debt relief companies. For example, if they are offering solutions without having a little understanding of your financial condition or loans you owe, it is an alarming sign. Furthermore, some companies may ask you to stop interacting with your creditors completely. Ask them the valid reason for it and study about its consequences before making the move.
Some companies often require their clients to pay a huge sum of fee in advance. Instead of paying this fee to the creditors, they keep it to themselves and the debt situation worsens.
Do not Make any Move without Signing the Agreement
An important tip to follow is to not make any move without signing an agreement with them. Furthermore, when signing the contract, carefully go through it. In case you have an ambiguity regarding a certain clause in the contract, do not hesitate in asking the representative of the company.
Our Final Word
By following the tips discussed above, there are high chances that you will be able to avoid debt relief scams and select the right company to get out of the stressful conditions you are in right now. A reliable and reputed debt relief company will make a debt relief program for you. This program will enable you to get rid of debts on easy terms that are favorable for you.