Having a lot of debt can be stressful at any age. But if you’re retired or about to live on a fixed income, paying off debt can sometimes be more challenging. As you explore your options, know that scammers might promise to take away your debt — for a fee. If you pay them before they help you, you’ll likely lose money instead of getting a fresh start. So, what’s the best way to pay down debt while avoiding scams?
- Take a look at your household budget. Use this worksheet to help you get organized.
- Call companies you owe money to, before a debt collector gets involved. Explain why you’re having trouble paying and ask for a payment plan. Some companies might agree to accept less than what you owe.
- Consider a credit counselor or credit counseling agency if you need help. A good credit counselor will help you make a budget and repayment plan that works for you.
To avoid debt relief scams:
- Never pay anyone before they help settle your debts. Legitimate organizations won’t try to charge you before they settle any of your debts or enter you into a debt management plan.
- Get any agreement to settle or manage your debt in writing. Before you sign, understand how the plan works and how it will affect your credit.
- Know your rights. Check out Getting Help When You’re in Debt to learn more on your options and rights.
- Improve your credit over time. No credit repair company can legally remove negative information from your credit if it’s correct and current. But there are steps you can take to repair your credit over time.
Have you seen a scam or have a problem with a debt settlement or other debt relief company? Tell the FTC at ReportFraud.ftc.gov.
#Spot #scams #debt