GREEN BAY, WI (WTAQ) – As millions of Americans remain out of work due to the COVID-19 pandemic, there is concern over how many will afford to keep up with debt obligations or maintain their current credit.
The coronavirus pandemic is impacting finances for some to the point where repaying loans could become a bigger issue.
“The first thing you should do is reach out to your creditor. Don’t think that if you ignore the problem, it’s going to go away,” says Susan Bach of the Better Business Bureau, “A lot of creditors are working with their customers to renegotiate their loans, renegotiate a payment plan, or even suspend payments for a few months.”
If those conversations go well and you are able to restructure an agreement, Bach recommends getting it in writing – just to have it in your back pocket in case a debt collector contacts you down the road.
“Don’t let it get to the point where your creditor hasn’t heard from you in several months – then they’ll initiate the debt collection process,” Bach says, “Work with your creditors to make sure that they are aware of your circumstances, and they may be very willing to renegotiate those loans.”
Now, as times continue to prove difficult for many financially and economically, people are looking for relief. While people are working to secure some kind of short term loan – it also makes them susceptible to advanced fee loan scams and debt collection scams.
If a debt collector comes knocking on your door, there are simple ways to identify whether they are legitimate.
“They should be able to provide information, in writing, about your debt,” Bach says, “They shouldn’t threaten arrest or harass you in any way. You have a variety of rights that you should exercise.”
If a legitimate debt collector is giving you grief, you are able to file a complaint or leave a review at BBB.org. The state attorney general’s office, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) also have avenues for complaints against collection agencies.
To avoid debts or other potential issues, people should keep tabs on their current credit to identify any troubling areas or trends in your finances.
“We should be keeping on top of our credit report. If there is any past-due loans or black marks on our credit report, we can work to rectify those,” Bach says
It’s recommended to avoid paying for a credit report. The only legitimate website for obtaining the free credit report to which you are entitled yearly is AnnualCreditReport.com. Be alert to websites that offer a “free” credit report but charge a fee in the fine print.
