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From Conflict to Connection page 1
Famous Spats That Shook History
Listen First, React Later page 2
Skills You Gain in Couples Therapy
Grilled Whole Chicken and Vegetables page 3
Safer Ways to Work With Creditors page 4
SEPARATING REAL HELP FROM RISKY SCHEMES THE TRUTH BEHIND ‘DEBT RELIEF’ ADS
When every bill feels like a fire drill, it’s hard to think straight about money. For some people, the situation can make debt relief ads tempting. The problem is that the phrase “debt relief” can mean a wide variety of things. Some options are legitimate and tightly regulated. Others are scams with good marketing. Before you agree to anything, you need to know what you’re signing. Most of the time, debt relief companies don’t give you a loan. They offer to negotiate with your creditors, typically for credit cards, medical bills, and other unsecured debts. In many programs, you stop paying your creditors and instead send money into a separate account. Once that account hits a certain amount, the company uses it to make lump-sum settlement offers. That approach can sometimes lower what you owe, but it’s risky. While you aren’t paying, late fees and interest keep adding up. Your credit score can take a big hit, and there is always the chance a creditor will
sue instead of settling. Because of those risks, debt settlement should be considered a last-step option.
to make a hard situation worse by working with the wrong company. A quick call to a trusted counselor, financial advisor, or attorney can help you choose a plan that protects you over the long term.
Working with a nonprofit credit counseling agency is a much safer option. They start by reviewing your budget and explaining the options available to you. In some cases, these agencies can set up a debt management plan with a lower interest rate while keeping you in good standing with your creditors. If you do talk with a for-profit debt relief provider, tread carefully. Avoid working with any company that guarantees it can wipe out a certain amount of debt or claims it’s operating under a “new government program.” Be very cautious if anyone tells you to stop talking to your creditors or to ignore their letters and calls. A company that charges upfront fees or refuses to explain its costs in writing should also raise red flags.
Struggling with debt while bills keep piling up is a tough spot for anyone to be in, but you don’t want
4 • BrucePA.com
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