Some scams are aimed at people with financial issues. Your name is available from foreclosure records, bankruptcy court records, or getting your name from a list purchased from debt collectors. These companies are counting on you being desperate to resolve your financial issues as quickly and easily as possible. You must remember when contacted by these people that if it sounds too good to be true, it probably is.
Bankruptcy
If you are having financial issues and need relief, contacting a bankruptcy attorney can eliminate debt and allow your income to go further to make necessary purchases. Along with bankruptcy, you may consider other avenues to get financial relief. Some lenders target people like you and take advantage of your difficult situation.
High-Interest Loans
Shady lenders will offer loans to get back on your feet. These often come with high-interest rates, and sometimes they would like you to use your home as collateral. Another lie they tell you is that if you make your payments on time for a year, your rates will be reduced. These lenders are trying to take advantage of you by taking your money, possibly your home and offering little to nothing in return.
Credit Repair
Your credit report cannot be cleaned up by an agency claiming to do so for a fee. Promises to clear your report even though you have many late and missed payments are empty promises. What these agencies do is contest every debt you have on your report and hope that they will get lucky, and the credit reporting agencies will remove something. You can check your credit report yourself and dispute any inaccuracies. Some of the popular free credit apps now have a one-click dispute button making it easy to challenge a debt that is listed on your report.
“Sub-Prime Borrower”
You may hear that you are a sub-prime borrower and, therefore, must pay a higher interest rate. You don’t have to take their word for it. You should always shop around and look for better interest rates and terms when searching for a lender.
“No Credit, Bad Credit, No Problem”
These companies that advertise no credit check, or bad credit ok, are targeting people that don’t feel like they could get better rates elsewhere. These loans will come at high-interest rates, and payments will last longer than necessary to make up for the high finance charges.
If you need to talk to an attorney about your financial problems, contact a McAllen bankruptcy attorney today.