Don’t Let Debt Relief Compound a Problem
Consumers struggling with debt are not alone … and not without options. But the Federal Trade Commission is warning consumers this week that the search for help can itself become a trap.
In a new consumer alert the FTC lays out clear red flags regarding companies that promise debt relief: any company that demands payment upfront before settling a single debt is a scammer. As are firms that “guarantee” elimination of debt entirely or fast loan forgiveness. And if you receive an unexpected call or text offering to resolve your debts quickly in exchange for personal or financial information, don’t respond.
Legitimate help does exist. Reputable credit counseling organizations will provide free information about their services before asking anything about your situation, and won’t charge in advance. The FTC also points to consumer.gov, which offers free, practical resources on budgeting, getting out of debt, and understanding your rights when dealing with debt collectors.
The short version: real help doesn’t ask for money before it does anything, and it doesn’t make promises that can’t be kept.
If you encounter a debt relief scam, you can report it directly to the FTC at ReportFraud.ftc.gov. The full consumer alert is available at consumer.ftc.gov.
March 26th, 2026
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