Finding Help
Federal and state government agencies are lining up to warn us that hard economic times are resulting in scams of all sorts. Web sites with names that sound like real government programs are requesting cash and personal information from consumers unlucky enough to type in the wrong Web address. Ads on the radio and television promise to free you from tax bills, credit card bills and mortgages for next to nothing. There is even one mailing from the "Credit Relief Division" in Washington written to sound like a government agency that is willing to settle your debt!
"Credit Relief" and "National Debt Relief" and others are almost certainly outright scams and some offers are legitimate but harmful. Either way, consumers are well advised to be careful. People who are desperate seem more inclined to believe that everything can get better with just one check to the right person (or one extra lottery ticket). The real truth can be found in that old adage: "that which seems too good to be true, is." There is no safe, simple and cheap way to avoid taxes, credit card debt or foreclosure.
The Budget Doctor’s Advice on Professional Assistance
- Always start with someone you know and trust. Ask for referrals and collect a number of names of experts in a given field.
- Check all the names with the Better Business Bureau. Eliminate any with a questionable record or no record at all.
- Only deal with people when you initiate the contact. Ignore the coupons in the mail, the phone calls and the emails seeking your business. In fact, ignore all advertisements.
- Have any agreements reviewed by someone you respect and trust. An investment contract probably deserves the expense of an attorney or CPA. An agreement with a certified housing counseling agency or known charity may only need the assistance of a smart friend.
- Always take a day to look for other providers and think about the agreement. The only decisions that should be made in seconds have to do with chewing gum and stinging insects.
- Don't automatically accept a referral from some other service provider. That lender recommended by your car dealer probably pays for leads. The insurance sales person may exchange leads with the investment salesperson. They do not place your interests first if they make money from these efforts.
When you get a letter stating that the government has a debt settlement program created in conjunction with the Economic Stimulus Act of 2009, ignore it. When you see an ad promising to lower your house payment, ignore it. When you see a television or radio show telling you how to reduce your credit card debt by 50%, change the channel. The people best suited to help you don't need to spend a lot of money convincing you to contact them. They get referrals from satisfied clients and they get good ratings from the Better Business Bureau.
It is sad that there are so many professional service providers who believe that their first obligation is to themselves, but no matter how many get locked up, you can be sure that others will come by to take their places. Be careful out there!