Canada sees rise in debt relief scams amid high inflation

With the rising cost of housing groceries gas prices and other necessities more Canadians are under Financial pressure if you’re in debt it can be very stressful and you have to make sure you don’t make it worse by getting scammed here’s Pat forign and consumer alert Pat Nathan and Michelle

During the pandemic many people got government benefits and interest rates were low but now personal bankruptcies are on the rise if you’re facing financial problems make sure you get professional help and don’t fall for debt relief scams offering false promises the rising cost of living is stretching some household budgets to the

Brink if your debt is becoming unmanageable don’t fall for several debt relief scams currently making the rounds the activity from collectors has skyrocketed so yes we’re getting a lot more calls than we were a year ago Doug Hoy is a licensed insolvency trustee and says beware debt Consultants asking for

Fees upfront claiming they can get you a better deal if anyone is asking you for upfront fees it’s a scam it’s as simple as that a licensed insolvency trustee is not allowed to charge upfront fees also watch out for anyone who makes unrealistic promises or pressures you to

Make quick decisions if someone tells you to stop communicating with and paying your creditors that could make your situation much worse once you stop paying for a few months you’ll definitely be in trouble and there’s no going back to the Damage Done in your credit bureau many debt relief scams off

Operate through social media or you may get offers by text or email all these odds pop up where they say oh there’s a new government program you can get rid of 80% of your debt another sign they may not be legit they only offer online services with no option for in-person

Visits if someone says Nope under no circumstances can we meet with you in person then that’s a definite red flag if you’re having financial difficulties you can find a licensed insolvency trustee online who can discuss your situation for free you could develop a debt management plan to pay back your

Creditors or file a consumer proposal only about 20% of those who contact a trustee file for bankruptcy so if you’re feeling overwhelmed by debt you have options and also watch out for fake loan scams that’s when a scammer says they can get you a loan even if you have bad

Credit as long as you pay money in advance for a processing fee but once they get your money the loan never happens on your side I’m Pat foren if you have a consumer story idea email us at alert at ctv.ca

A licenced insolvency trustee is warning consumers to beware debt consultants asking for fees up front, calling it a scam.

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