Scams that would dump you into debts and thrash credit score

Scams are spooky. They play with your emotions, increase your stress, ruin you financially and thrashes your credit score. Watch out for these 4 kinds of scams today onwards and take appropriate measures to avoid them if you want to safeguard your financial life.

Government Imposter Scam

The last person whom you would suspect to do something fishy is a government official. Right? Exactly! Scammers know this fact really well and that’s why they come across you disguised as government officials to make you pay them.

Tactics used by scammers

  • Pose as government official and inform that you’ve won a big-ticket bonanza. But you’ve to pay tax to get the winning amount.
  • Act as a law firm and send you an official looking letter to collect debts from you.

Read more on how to avoid government imposter scam -

Debt Settlement Scam

Have you ever imagined what will be your plight if a debt settlement company scammed you? You’d have no option but to rush towards bankruptcy within a few months. Your credit score would reach bottom low too. Unfortunately, this is what is happening nowadays. A lot of debtors are getting scammed everyday due to lack of information on their end and dirty tricks played by the scammers.

If you really want to avoid getting scammed, then watch out for the following signs from your end:

  1. The settlement company asks you to pay fee before they start negotiating with creditors.
  2. They settlement company creates a pressure upon you to enroll into their services.
  3. They promise that your credit score will increase after settling debts.

Explore the tips to avoid debt settlement scams -

Tax Scam

Stop looking at a tax settlement specialist as a person with a magic wand. That’s because it is not that easy to settle tax debt since the IRS has strict guidelines for Offer in Compromise option. Secondly, don’t blindly believe someone who claims to be a tax settlement specialist. He can very well be a scammer who would ask you to pay an advance of $3000 or above that amount. Once you’ve paid it, he would do nothing at all or would keep requesting you to same documents again and again. After a few days, you would come to know that your efforts were in vain as the IRS has rejected your offer. So beware!

Tips to avoid scams

  1. Don’t believe the advertisements easily.
  2. Beware of the companies that charge upfront fees.

Get more information on how to avoid scams while settling tax debts -

Investment Scam

Have you ever wondered who are the easiest targets of scammers? It’s the seniors since they’re gullible and can duped easily. As a son or daughter, it’s your duty to protect your parents and their life savings. Here are a few lessons you can teach your parents to avoid investment scams and these are:

  1. Ask as many questions possible before investing
  2. Find out if the company has a good reputation in the investment market
  3. Interact with the salesperson and acquire information about him

Get insights on how to avoid investment scams -

Last Updated on: Mon, 4 Apr 2016

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