Good Karma: FREE, Legit Foreclosure Prevention and Credit Counseling

Worried about affording your mortgage and other consumer debts?  Facing foreclosure?  For-profit companies have been popping up all across the country, promising to take care of your debts, even your mortgages, for pennies on the dollar.  These scammers refer to their services as debt negotiation, debt management, debt settlement or even legal services. Their plan is for you to default on your debts, to make your creditors desperate to settle for a fraction of the total debt.  But first you must pay a hefty upfront fee before they’ll provide any services.  “Don’t pay them, pay us instead.”

If anyone promises you consumer assistance in exchange for hefty fees, run.  Run fast, and run far, taking your checkbook with you.  The only goal these scammers have is to take your money and then tell you to hire a lawyer if/when you get sued for the defaulted debts.

The best way to address your financial troubles is to sit down with a certified credit counselor from a non-profit agency.  He or she can look at your entire debt picture and provide sound advice about foreclosure prevention, trimming your budget, coming up with a debt management plan, or possibly filing for bankruptcy.  Online and telephone consultations are often frequently available.  The services are available for a reduced rate or even free.  Why pay  up to $3,500 (or more) to hire an out-of-state company when you can get better advice for practically nothing? According a new statewide education campaign:

“Look Before You Leap” empowers home owners to spot deceptive scams and to protect their most precious asset – their homes. The effort engages local governments, nonprofits, community and business leaders, and citizens in preserving home ownership in Minnesota by calling attention to scamming companies’ predatory techniques and offering home owners free alternative home preservation solutions. 

Click “How to Get Help” at the top of the website, and then enter your zip code for a list of local agencies you can contact with questions.  You can also follow them on Facebook, Twitter and YouTube.  Even if you are not a homeowner or not currently at risk of foreclosure, you can still help stop foreclosure scams in Minnesota.

photo:  http://www.lookbeforeyouleap.org.