People in financial trouble will do almost anything to find alternative solutions to bankruptcy in Lethbridge, or for that matter, anywhere in Canada.
In their search for credible solutions, desperate people frequently suspend good judgment and accept anything they are told without question. If you are struggling to keep up with your bills and you get a notice in the post informing you that you have been pre-approved for a debt consolidation loan of $20,000, you desperately want to believe it is a legitimate offer.
In most cases, Lethbridge residents are smart enough to smell a scam when they read all they have to do to get the loan is send in a hefty processing fee.
In our experience, there is a bigger problem arising from what many Canadians simply fail to understand about how even reputable credit solutions work. Depending on your circumstances, credit solutions can lead to making your financial difficulties worse, not better.
You may find complaints on the Internet from consumers convinced they have been the victims of credit solution scams when they find themselves being sued by a creditor even though they are in a credit solution program. However, in almost all cases the problem lies in the fact consumers fail to grasp the pitfalls inherent in these solutions.
Credit solution providers do inform potential clients their programs offer no legal protection from lawsuits. The warning may be buried in the fine print or be part of a long verbal litany of disclosures read by a voice over the phone while the consumer on the other end waits patiently for the end.
Another real danger lies in how the credit solution provider communicates with your creditors. As you probably know, most of these programs involve making monthly payments directly to your creditors. Few consumers have enough cash on hand to allow the credit solution provider the opportunity to propose a lump sum payment.
What this means is creditors will have to wait to be paid. In far too many cases, the creditors get only an announcement letter from the credit solution provider that leaves them with no idea at all when they can expect payment.
To protect yourself from these problems, the best advice you can get is to stay away from credit solution providers that operate exclusively on the Internet. Stick with a provider who has been in business in the Lethbridge area for an extended period. Even then, you need to know how they communicate with each of your creditors and when they can begin distributing funds to them.
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