We all want to be debt free. In this tough time, we work so hard to remove ourselves from the clutches debt of but the struggle seems endless and we find sinking into the quagmire of debt. To end the seemingly endless debt struggle, most of us look for a debt company to help us get out of debt. Practically, there are hundreds of debt help in Australia but you have to bear in mind that not all these debt help companies are sincere in helping you to reduce your debt. There are some fraudulent debt relief companies that are taking advantage on troubled and financially strapped borrowers. If you planning to get the services of a debt relief company, it is important that you how to spot the legitimate and established company from the illegitimate and fraudulent one.
Here are the 3 red flags that you have to watch in choosing a debt help in Australia.
- Asking an upfront fee.
Be wary of a debt relief company that asks for an upfront fee. A legitimate and trustworthy debt relief company won’t make you pay up front. An upfront fee in exchange for a 100% guarantee is one of the oldest scams in the debt relief industry. The fraudulent debt help company would ask you for an upfront payment to “lock in” your debt rate. As soon as you hand over your payment, the company evaporates like smoke and their contact numbers cut off. Some of the fraudulent debt relief companies would require you to pay for an upfront fee because they simply do not have the skills or experience to deliver the services they promise, by asking an upfront fee they will get paid even if they fail to do their job.
Do not trust a debt relief company that requires you an upfront fee.
- Promises 100% success.
No debt relief company can guarantee that your creditors will forgive or reduce your debts. If a company tells you that they can guarantee a 100% success, you have to be wary. If they start making promises that are too good to be true, it is probably is.
- Claims to be affiliated with a government agency.
If a debt relief company is flaunting that they are affiliated to a certain government agency or a high ranking government official, you have to be suspicious because it is not normal for a government agency or a government official to be affiliated with a private debt relief company. The best thing to do is a research to get a validation if the claim is true.