Weighed down by debt? How to ease the load

If you’re overwhelmed by debt, it’s crucial to find a solution.

FDIC Consumer News offers a few tips.

• Contact your lender immediately if you think you won’t be able to make a loan payment.
• Reputable credit counseling organizations can help you develop a personalized plan to solve a variety of money problems. 
• Be very careful of “debt settlement” companies that claim they can reduce what you owe for a fee.
• Avoid scams.
• Remember that you have rights when it comes to debt collection.

For more information, click here.

Teaching Suggestions

• Ask students if they know anyone who has had financial difficulties and how they resolved their problem.
• Ask students to review the main provisions of the federal Fair Debt Collection Practices Act and how the law protects consumers from unfair debt collectors.

 Discussion Questions

1. Why is it critical to contact your mortgage lender immediately if you think you can’t make a loan payment on time?
2. In what ways reputable credit counseling organizations can help you develop a personalized plan to solve financial problems?
3. What are the warning signs of possible fraud by a debt settlement company or credit counselor?