There’s a new ploy to exploit legal loopholes and get debt wiped off.

It’s a debt transfer scheme whereby the debtor pays a fee and transfers the debt to a claims firm through an agent. The debtor is then supposed to be debt free. The firm effectively gabbles that it will be able to get the debt cancelled.

The problem is that there are concerns that the debt transfer may not be legally watertight. If that is the case the debtor will have ended up paying a fee and still be saddled with the debt. Not very satisfactory if you are the debtor!

If you are in debt and are offered one of these schemes, take care. Look closely into the paperwork and get some form of guarantee that your creditors cannot still come back to you.

Better still don’t get into a financial mess and pay your debts!