Learn How To Avoid Debt Elimination Fraud And What To Do If You Are A Victim!

Debt elimination fraud, learn how to avoid debt elimination scams, debt counseling scams and credit repair scams online!

There are various debt elimination fraud and credit repair scams out there right now and it is really sad. People are being duped into believing some fallacies that are actually getting them into hot water not only with their creditors, but with the law as well.

To list all of them would require volumes. However, if you want to get debtfree, know that there is no magic bullet, no fast, easy way to eliminate your debts. It takes hard work and discipline - and it won't happen overnight.

There are two types of fraud that are very prevalent right now online. These are the debt elimination letter and the credit card illegality scam.

These are somewhat similar to each other but do have some differences. Since these seem to be the two major scams that are popular right now, you need to know about them, know what to look for and how to avoid them.

Debt Elimination Fraud 101

The Debt Elimination Letter

In this form of fraud, a company requires that you send them a fee (usually a very substantial one, as much as $2,500 or even more) and this debt elimination agency will send you a letter that you are supposed to show to your creditors and they will waive your debts.

Although this would be a wonderful thing if it had any shred of truth to it, but things just don't work that way. The letter is not worth the paper on which it is printed and you will likely wind up with late fees, collections calls and higher interest rates. Plus you will be out however much you paid the company to send you a worthless piece of paper.

Do yourself a favor; use the money to pay off some of your debts. See, these scammers try to convince you that many of the fees that the bank card companies charge are, in fact, illegal. Because these fees are supposedly illegal, they nullify the entire account, rendering it as void. These letters are typically called "Bond for Discharge of Debts," "Redemption Certificates" or something similar.

At the onset, most people know that it sounds too good to be true - and it is. If it was true and banks and credit card companies consistently charged illegal fees to customers, the courts would be clogged with such cases.

The media would have pounced on it and it would be on every news show and in every magazine and news paper everywhere you looked. But, these letters and certificates are nothing more than old fashioned fraud type scams. Don't even entertain the thought of giving any of these companies your money.

Credit Card Illegality Scam

This form of debt elimination fraud is similar to the other scam but its rationale is somewhat different. This version claims that you are borrowing your own money. It asserts that the entire credit card system is illegal and, in fact, because it is illegal that bill is illegal as well.

Though it may be tempting to fall for something like this, don't. You will shell out $1,000 to $5,000 UP FRONT so that some scam artist can extort you while he or she laughs all the way to the bank - on your dime.

Consumer debts are rising exponentially. People are becoming more and more financially over extended and when they get to that point they will often become desperate. It is this desperation that the scam artists bank on when they commit fraud.

They dangle the temptation of getting out of financial trouble quickly and easily - just pay this exorbitant amount and you will be in the free and clear. Know that there is no quick or easy way to get out of financial trouble unless you experience a windfall.

Most of the time you have to do it the old fashioned way. Don't fall for these debt elimination fraud scams - they'll take your money and run.

You can visit the Better Business Bureau's website www.BBB.org and find reports on hundreds of Debt Elimination Companies.