Advice from the Better Business Bureau on debt

Repair your credit: Advice from the Better Business Bureau

YOU ARE CERTAINLY NOT ALONE. AS WE GET OUT OF THE HOLIDAY SEASON, A LOT OF FOLKS ARE FINDING THAT THEY MAY HAVE OVERSPENT DURING THE HOLIDAYS, AND NOW THEY FIND THEMSELVES IN CREDIT CARD DEBT. BUT YOU NEED TO BE CAREFUL WHEN YOU TRY TO GET YOURSELF OUT. ANGIE BARNETT WITH THE BETTER BUSINESS BUREAU IS JOINING US NOW WITH SOME HELP. YOU’RE HERE TO RESCUE US. YES. GOOD MORNING. AND I TELL YOU, CREDIT WELL DEBT AND A AS A WHOLE HAS REALLY INCREASED POST PANIC AS WELL. IT JUST CONTINUES TO SPIRAL. I LOVE THIS STATISTIC. OVER $16 TRILLION OF DEBT BY US AMERICANS ISN’T THAT AMAZING. IT’S A LOT OF PEOPLE LOST THEIR JOBS. THEY HAD NOTHING ELSE TO USE. BUT CREDIT CARDS. THERE WAS ALSO A LOT OF DEPRESSION. SPENDING, YOU KNOW, LIFTS YOUR MOOD WHEN YOU SEE THE AMAZON TRUCK COME. YEAH. SO I THINK THAT’S REALLY IMPORTANT. BUT WHAT WE REALLY WANT TO SPEAK ABOUT IS FINANCIAL WELLNESS. AND PEOPLE ARE LOOKING FOR OPPORTUNITIES TO GET OUT OF DEBT. AND RATHER THAN JUST BUDGETING AND BEING SMART ABOUT IT, THEY’RE LOOKING FOR EXTERNAL RESOURCES TO HELP THEM. SOME ARE OKAY AND PRETTY GOOD. OTHERS ARE NO. SO HOW DO YOU KNOW THE DIFFERENCE? YEAH, THE FIRST ONE, LET’S START WITH CREDIT COUNSELING. IT IS GREAT. DEPARTMENT OF JUSTICE APPROVES CREDIT COUNSELING. YOU CAN GO TO DEPARTMENT OF JUSTICE. CLICK ON A LINK. FIND THE MARYLAND APPROVED CREDIT COUNSELING BECAUSE THEY’RE GOING TO WORK WITH YOU ON BUDGETING. THEY’RE GOING TO REALLY LOOK AT A LONG TERME PLAN AND HELP YOU GET OUT OF THAT SERIOUS CREDIT CARD DEBT. AND NOT ALL DEBTS ARE BAD. WE ALL, YOU KNOW, OWNING A HOME OR A CAR. YEAH, YEAH, THAT’S ALL GOOD. BUT NOW WE GO INTO SOME OF THE MORE TRICKY ONES. LET’S DEBT RELIEF FREQUENTLY. THAT’S REFERRED TO AS DEBT SETTLEMENT. THAT IS WHERE YOU HIRE A COMPANY THAT’S GOING TO ACTUALLY TRY TO REDUCE YOUR INTEREST RATE OR CANCEL YOUR DEBT WITH OTHERS. THAT’S REALLY CAUTIONARY. AND THAT FREQUENTLY IS A BUSINESS MODEL THAT ASKS YOU FOR UPFRONT FEES. RIGHT? SO THEY WANT MONEY. MONEY. YOU DON’T HAVE ANY WAY TO BE ABLE TO DO ALL OF THAT. AND WE HAVE HORROR STORIES AT B-B-B WHERE PEOPLE PAY THOUSANDS OF DOLLARS TO BUSINESSES THAT REALLY CAN’T HELP THEM. DEBT CANCELING NATION THAT’S MOVING ALL YOUR CREDIT CARD, ALL YOUR DEBT INTO ONE LOAN. IT’S A PERSONAL LOAN. IT CAN BE GOOD. YOU’VE GOT TO WATCH THE INTEREST RATES AND I ALWAYS SAY, MAKE SURE YOU’RE READING THE CONTRACT. IT’S WHAT IS IT? INCLUDE EXCLUDE. IT’S REALLY IMPORTANT. THE LAST ONE CREDIT REPAIR. THIS IS THE ONE THAT DRIVES ME CRAZY AT B-B-B. IT’S OUR HIGHEST LEVEL OF COMPLAINTS BECAUSE BAD CREDIT IS BAD CREDIT, RIGHT? YOU CAN WORK TO IMPROVE IT, BUT THEY CANNOT REMOVE IT. THEY’RE NOT GOING TO DO IT. SO YOU CAN’T PAY OFF YOUR CREDIT SCORE BASICALLY. EXACTLY IS WHAT THAT IS. LET’S GO BACK TO THE CREDIT COUNSELING. IS THAT FREE? YES. MOST OFTEN YES. MOST OF THEM ARE NONPROFITS. SO THERE’S SOME REALLY GREAT ONES IN MARYLAND. SO THOSE WE REALLY RECOMMEND AND AND WOULD ENCOURAGE ANYBODY TO LOOK INTO IF THEY NEED TO EVEN HELP WITH BUDGETING AND THE THE DEBT RELIEF OR THE DEBT ASSISTANCE COMPANIES. THEY’RE GOING AFTER THE LOWER INTEREST RATES FOR YOU. BUT THAT’S SOMETHING. YOU CAN ACTUALLY DO YOURSELF. YOU CAN. AND THAT’S WHAT PEOPLE DON’T KNOW. FIRST OF ALL, LET’S BEGIN WITH CHECKING YOUR CREDIT SCORE. ANNUAL CREDIT REPORT.COM. THAT’S THE ONE THE GOVERNMENT APPROVES. ANNUAL CREDIT REPORT.COM. YOU CAN GO AND MONITOR. AND IF YOU SEE CHARGES THAT AREN’T LEGIT, YOU CHALLENGE THEM AND YOU CAN ALWAYS REACH OUT TO YOUR CREDITORS AND SAY, I’M HAVING A HARD TIME. MOST OF THEM HAVE SOME RELIEF PROGRAMS TO HELP YOU GET THROUGH IT. IT’S JUST HAVING A PLAN AND COMMUNICATION WITH THEM. WE KNOW SOME BUSINESSES WILL SAY, STOP PAYING YOUR CREDIT CARD ALTOGETHER. STOP YOUR COMMUNICATION. AN NO RIGHT? THAT’S THE WORST THING. EVERYTHING WORSE. AND THAT’S REALLY GOING TO IMPACT YOUR CREDIT SCORE. WOULD THOSE BE SOME OF THE RED FLAGS THAT YOU WANT TO TALK ABOUT TO? YEAH. WHEN THEY’RE TRYING TO GET YOU TO DO THAT. ALSO UNSOLICITED ADVICE OR UNSOLICITED EMAILS FROM THESE COMPANIES. AND THAT’S WHERE YOU’RE GOING TO SEE THEM ON FACEBOOK, SOCIAL MEDIA, THE FRIENDS YOU GET FAKE MESSAGES AND FRIENDS SAYS, I REDUCE MY DEBT HERE. I REALLY RECOMMEND THIS. YOU GOT TO AVOID THOSE. YOUR BIGGEST RED FLAG IS UPFRONT FEES. BEFORE ANY SETTLEMENT, ANY SERVICES ARE DELIVERED. THAT’S A BIG NO NO WITH THE FTC. THE SECOND ONE I WOULD REALLY ENCOURAGE PEOPLE DON’T START HANDING OVER YOUR PERSONAL INFORMATION BECAUSE YOU’RE GOING TO HAVE TO GIVE YOUR SOCIAL SECURITY YOUR BANK CARDS. DON’T DO THAT UNTIL YOU REALLY INVESTIGATE IT. AND IF THEY’RE GOING TO GUARANTEE WE’RE GOING TO LOWER YOUR CREDIT OR YOUR DEBT, AND WE’RE GOING TO INCREASE YOUR CREDIT RATING, IF THEY GUARANTEE THAT NO, NO, STAY AWAY. STAY FAR, FAR AWAY. YEAH. AND IF YOU THINK YOU HAVE BEEN SCAMMED, WHAT SHOULD YOU DO? REPORT IT TO FTC. THIS IS A HOT TICKET ITEM. I WOULD REPORT IT TO THE AG’S OFFICE AS WELL AS B-B-B. UM, SEVERAL ATTORNEYS GENERAL’S OFFICES ACROSS THE UNITED STATES HAVE COME TOGETHER, AND THEY’VE ACTUALLY TAKEN ACTION AGAINST LARGE CREDIT REPAIR, UM, BUSINESS OVER THE LAST TWO WEEKS. SO THIS IS GREAT ADVICE, REALLY IMPORTANT TIME. HERE IT IS. YOU KNOW, YOU’RE IN DEBT AND YOU’RE TRYING TO GET OUT OF IT. AND THESE THESE SITUATIONS CAN MAKE IT SO MUCH WORSE. SO ANGIE, THANKS SO MUCH FOR COMING IN. THANK YOU. YOU’RE WELCOME. YOU GOOD TO SEE YOU. SUNN

Repair your credit: Advice from the Better Business Bureau

Angie Barnett from the Better Business Bureau talks with Jen about the options customers have when trying to recover from financial difficulties. From improving your credit score to reporting fraud, the BBB has advice for anyone looking to improve their financial freedom.

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