Council on Aging - Answers 2022 - 59

COUNCIL ON AGING - SOUTHERN CALIFORNIA
n When you are likely to be able to restart
regular payments
n Your income, expenses, and assets
Be sure to get confirmation of any agreements
in writing.
Credit card companies and lenders may be
able to offer you a number of options to help you.
This could include waiving certain fees like ATM,
overdrafts, and late fees, as well as allowing you to
delay, adjust, or skip some payments. Some lenders
are also saying they will not report late payments
to credit reporting agencies or waiving late fees for
borrowers in forbearance due to this pandemic.
Act fast if you cannot pay your credit cards.
Many creditors may be willing to help if you are
facing a financial emergency. You do not need
to be behind on your payments to ask for help!
Don't ignore the problem as this can cause bigger
problems such as:
n Higher interest rates
n Losing your charging privileges
n Late Fees
n Damage to your credit score
Learn how to how to talk to your credit card
company. Be sure to clearly explain:
n Why you can't pay the minimum
n How much you can afford to pay
n When you could restart your normal
payments
Consider working with credit counselors to
understand your options
Reputable credit counseling organizations are
generally non-profit organizations that can advise
you on your money and debts and help you with
a budget. Some may also help you negotiate with
creditors. These trained professionals provide
advice for little or no cost, and they will work with
you to:
n Discuss your situation
n Evaluate options
n Help you negotiate with your lenders and
Council On Aging - Southern California | 714-479-0107 | www.coasc.org
servicers
There are specific questions to ask to help you
find a credit counseling organization to work with.
Before signing up for credit counseling, ask if you
will be charged, how much, and what services will
be provided. Be sure your credit counselor takes
the time to learn about your financial situation and
offers to help you learn how you can make it better.
No easy fixes
Some for-profit debt relief companies say they
can pay off your debts " for pennies on the dollar. "
Many times, these promises don't measure up.
Watch out for any debt-relief organization that:
n Charges fees before it settles your debts
n Guarantees it can make your unsecured debt
go away
n Tells you to stop communicating with
creditors
Warning: If you're considering working with a
debt settlement company to address your debts, be
skeptical of any company that promises to do it for
an upfront fee.
Keep your money safe
Whether or not you've experienced a financial
hit, don't head for the ATM to withdraw more cash
than you usually need.
Your money is safe in your bank or credit union
account. Unlike money kept at home, you likely
have federal protections if money you've deposited
are taken illegally and in the unlikely event your
institution shuts down. You will always be able to
get cash when you need it.
Generally, all bank deposits up to $250,000
are insured by the Federal Deposit Insurance
Corporation. Deposits at all federal credit unions,
and the vast majority of state-chartered credit
unions, are also insured up to $250,000 by the
National Credit Union Share Insurance Fund
(NCUSIF).
For additional information, call the CBPB at
(855) 411-CFPB or visit www.consumerfinance.gov
Reprinted from the Consumer Financial
Protection Bureau consumerfinance.gov/
Answers Guide 22/23
59
FINANCE & LEGAL
http://www.consumerfinance.gov http://www.consumerfinance.gov/ http://www.coasc.org
Council on Aging - Answers 2022

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