According to an article in the AZ Family some debtors struggling to fight foreclosure , repossessions and other financial problems are being ensnared by internet lending scams that offer “high-risk loans” to people with credit problems.
The article said:
“I got on the Internet and looked for high-risk loans because my credit isn’t great,” Woolway said. She came across a company called Westgate Financial Solutions and after filling out a form, Woolway says she was approved for a $7,000 loan. All she had to do was wire Westgate Financial Solutions some cash as collateral. It was a request she didn’t think was unusual.
“My credit sucks,” Woolway said. “They need some guarantee somehow.” Woolway wired almost $800 to Westgate Financial Solutions. But after getting the money, the so-called loan company wanted more collateral. So, Woolway agreed to wire another $500. After wiring nearly $1,300, Woolway says Westgate Financial Solutions refuses to call her back and has failed to come through with that $7,000 loan. “I felt that with that loan, I would be able to get up on my feet and do things for myself,” Woolway said.
So many debtors fall into traps similar to the one illustrated in this story. Like many debtors Woolway was struggling to pay her rent, utilities and even to put gas in her car. Let’s lay down the ground rules.
*If you’re facing foreclosure, eviction or other financial issues be very cautious of accepting offers of “high-risk” loans that promise to rescue you from foreclosure, bankruptcy or save your vehicle from repossession.
*Don’t ever send anyone “collateral” for the above-mentioned loans especially an internet company claiming to be a financial institution. Most likely you will never see that money again and may be forced to file bankruptcy or succumb to foreclosure depending on how much “collateral” you gave them.
*And finally, if you find yourself needing to take out a $7,000 “high-interest” loan to pay your rent/mortgage or other basics then you probably are in deep financial trouble and need to consider bankruptcy.
Bankruptcy can offer financial solutions such as discharging debt or repaying it over 3-5 years giving you a fresh financial start. To find out more about bankruptcy, contact a Dallas-Fort Worth bankruptcy attorney