If you are in debt, help is available. Knowing where to turn and how to avoid scams can make a big difference.
If you owe money and cannot pay it back, you may start receiving calls from debt collectors. In some cases, unpaid debt can lead to legal problems.
A credit counselor may be able to help. Credit counselors can assist you with creating a budget and developing a plan to repay your debts.
Learn more about steps you can take on your own by visiting Debt Explained.
Look for a credit counselor you can meet with in person. These organizations often offer affordable counseling services:
When choosing a credit counselor, be sure to ask:
A good credit counselor will take time to understand your financial situation and help create a realistic plan that works for you.
A trustworthy counselor will not:
A debt management plan is one option for repaying debts such as credit cards, student loans, or medical bills. Here is how it works:
Debt management plans do not work for everyone. A reputable credit counselor can help you decide if this is the right choice for you.
Debt settlement programs are different from debt management plans.
These companies claim they can negotiate with your creditors so you pay less than you owe. Debt settlement programs can be risky. Many companies make promises they cannot keep.
Some people who use debt settlement services end up with even more debt than they started with.
Never pay a company that asks for fees upfront before settling your debts.
If you think you have encountered a scam, report it to the Federal Trade Commission:
Information provided by the Federal Trade Commission. Learn more at consumer.gov.
