Who to talk to about debt management?

Report any problems you have with a debt collection company to your State Attorney General's Office, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB). Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. managing debt is a key component of how a financial advisor can help you plan for a healthy financial future. A person overwhelmed by debt is like a person bleeding from an open wound; the first step is to stop the bleeding.

A trusted advisor can chart a client's cash flow and identify existing and potential problem areas. Credit counseling is a service offered to people with excessive debt as an alternative to bankruptcy. A credit counselor will work one-on-one with you to provide financial education, credit analysis and a working budget. For most of those who talk to a counselor and are serious about getting out of debt, counseling has proven to be a successful alternative to bankruptcy.

To request proof that you owe the debt, call 888-826-3127 and talk to a debt recovery analyst. We will obtain the documents about your debt from the agency to which you owe the debt. We will then send you the documents. If your monthly payments seem to be going up too high, they may be able to enroll you in a debt management plan or recommend a debt consolidation service.

After the consultation, you can choose to have a credit counselor help you establish a payment agreement with your creditors under a debt management plan (DMP). Debt counseling can only help with collection accounts if the collection agency agrees to participate in the debt management plan, which may not happen. The debt counselor may be able to negotiate a lower interest rate or obtain a reduction or waiver of your financial charges. On the memo line of your check or money order, type the Treasury case number or the account number of your debt.

We, at the Treasury Department's Tax Service Office, cannot decide that you don't have to pay anything for a debt you owe to another federal agency. Your initial credit counseling session will provide you with information to manage your finances and debts. If you're having trouble making payments on your debt, you can consider getting credit counseling, even if you're currently behind on your balances. While your participation in a debt management plan may be reflected in your credit report, the program itself should not have a negative impact on your credit rating.

Debt settlement programs are often offered by for-profit companies and involve them negotiating with your creditors to allow you to pay a settlement to settle your debt, a lump sum less than the total amount you owe. If you think you don't owe the debt, you can dispute it (tell us why you think it's a mistake). Enrolling in a debt management plan allows you to stop making separate payments to each of your creditors and instead make a payment to a credit counseling service that will then distribute the money to your creditors. Debt counseling can provide you with the professional guidance you need to manage your debts without having to file for bankruptcy.

In Chapter 13, the court approves a payment plan that allows you to settle your debts over a period of three to five years, without surrendering any property. If a debt is a type for which there is a statutory exemption authority, only the agency to which you owe the debt can exempt it (decide that you don't have to pay anything) from that debt. Most financial advisors only advise their clients what to do, leaving the fieldwork to every person seeking debt relief. .

Evan Turomsha
Evan Turomsha

Award-winning twitter buff. Amateur web ninja. Total food maven. Typical travel fanatic. Certified beer geek.

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