Wednesday, September 8, 2010

Don't Fall For 'Debt Elimination' Scams

Everybody loves short cuts, be it getting rich, losing weight or reducing debts. This weakness in our human psyche makes us vulnerable to scams.

In the case of debt elimination, a lot of people don't want to give up their extravagant lifestyle nor face up to the consequences of mounting debts. They prefer to believe in the wonders of debt elimination scams.

Actually, there are no quick fixes for debt elimination which boils down to earning more income, spending less and using the surplus to pay down debt. A drastic approach like a crash diet where you don't eat for days is not productive. You either go back to your old habits or risk damaging your health.

Some debt elimination scams require you to pay a big upfront fee for secrets on dealing with your creditors but most of them are fake.

It is best to exercise caution when there are offers too good to be true. After spending like maniacs for years, no way can you pay someone a simple fee and make all the debts disappear.

Ignore those claims and work on getting yourself out of debt the old-fashioned way. Review your income and expenses and look for ways to either increase the income or decrease the expenses until you can lighten your debt load.