The Risks of Debt Relief Companies

The Risks of Debt Relief Companies

Debt relief companies may seem like a solution to financial struggles, but they are often misleading. These companies claim to renegotiate, settle, or modify the terms of your debt with creditors. However, as appealing as these offers may seem, working with debt relief companies can come with significant risks that could worsen your financial situation.

Risks of Debt Relief Companies

• They can charge high fees before delivering any results, with no guarantee of success.
• They may advise stopping payments during negotiations, which can harm your credit.
• Your interest and fees will continue to accumulate, leaving you with more debt in the process.
• Your creditors are not obligated to agree to any settlements. If the negotiations fail, you’re left with more debt and no resolution.

Be skeptical of any company that guarantees to completely eliminate debt, as debt relief outcomes vary significantly depending on individual circumstances. Make sure to thoroughly research any debt relief company through the Better Business Bureau or by reaching out to your known and trusted lending team at Connected Credit Union.

Debt Consolidation through Connected Credit Union provides a safer, simpler way to manage your debt. Our loan team is here to help you find the right solution for your financial situation. Contact us today at 207-623-3857 in Augusta or 207-872-2636 in Winslow.

Disclaimer: Any reference made in this blog to a specific product, process, or service does not constitute or imply an endorsement by Connected Credit Union of the product, process, or service, or its producer or provider.