How to Avoid Common Debt Settlement Scams?

Debt settlement scams are bad business. That much is obvious. What is also probably obvious is that you should avoid them at all costs.
What might not be so obvious is how to avoid common scams. It can be all too easy to get trapped in such a scam when you are simply looking for relief from your overwhelming debts.

Many debt settlement companies claim that they can effectively help you reduce your debt. Instead of doing this, they leave you off worse than you started. It is these companies that you want to avoid. These are the kind of companies that will try to fool you with a debt settlement scam.

avoid debt settlement scams

Luckily, avoiding common debt settlement scams is not a terribly tricky thing to do. Below are a few ways that you can do so.

Stay Calm

One of the biggest reasons that many people fall for debt settlement scams, even blatant ones, is because they don’t keep calm. Yes, debt is a scary and stressful thing, but picking any old debt company so that you can reduce your debt as fast as possible just won’t do. Instead, you should stay calm and take your time to look around at several companies. Do some research and pick the absolute best one that you can. Don’t worry if the process takes a month or two – it will likely help you avoid a debt settlement scam and reduce your debt more effectively in the long run.

Avoid Anything Too Easy

Wouldn’t it just be lovely if reducing debt was easy? Well, unfortunately it is not, and don’t let anyone tell you otherwise. While debt settlement companies can in fact make reducing your debt a simpler process, it still won’t be easy. Avoid any company whose processes sound too easy. Chances are that they are trying to pull you in with these promises and scam you.

Avoid Unrealistic Offers

At the same time that you should avoid anything too easy, you should also avoid unrealistic offers when looking for a debt settlement company. Many companies make unrealistic promises. If it seems too good to be true, it probably is. If it seems too good to be true, it is probably a debt settlement scam. To find out what an unrealistic offer is compare any debt settlement company’s claims with those of several others. Things should be about the same no matter whose services you are looking at.

Watch Out for the Time Period

Many debt scams have very long time periods. If a plan proposed to you by a debt settlement company takes place over a period of more than three years, it is probably a scam. Paying off debts with a plan for four or five or even six years will all but eliminate any of the benefits that you would have received in the first place.

Check Around

The absolute easiest and most effective way to protect yourself from and avoid common debt settlement scams is by checking around. Looking into each of the individual companies that interest you will help you ensure that the one you ultimately choose is reliable.

An excellent place to start your debt settlement scam research is online. Type in the company name on Google and look to see what others are saying about them. You can sometimes find customer reviews on sites such as Yelp. There are also many websites out there that exclusively focus on debt settlement company reviews and that strive to weed out scammers.

Finally, check with the Better Business Bureau. Any company that is in bad standing with them is a company that you will want to avoid at all costs. They are probably doing scams. You only want to go with a debt management or debt settlement company that hasn’t had any trouble with the Better Business Bureau before.


Avoiding debt settlement scams really isn’t a very tough thing to do, even though there are a whole load of them floating around out there. It just takes a little time, know-how, and research. If you are looking to use a debt settlement company to help you reduce your debts, make sure that they are a reliable and reputable one and not a scam.

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