Paying off debt? 7 On Your Side shows you how to avoid scams and how to better manage your money

LOS ANGELES (KABC) — Summer vacations are over, the school year is about to start, and the holidays are just around the corner.

All of that, of course, costs money, and can push people further into debt.

As you try to get your finances in order, don’t forget that scammers may be targeting you.

As you sort through your monthly budget, experts suggest you look into debt management companies rather than debt settlement programs.

Debt settlement companies can be risky, and you may end up owing even more money.

You also never want to pay anyone before a credit counseling agency helps you come up with a plan. Legitimate groups will work with you to figure out a debt management plan before they ask for payment.

As for those plans, you’ll want to know how the plan works and how it will affect your credit.

You’ll also want to get any agreement in writing, and one way to do that is to make a household budget. You can find worksheets online to help you get organized.

You can also call the companies you owe money to and ask for a payment plan, but you should do this before a debt collector gets involved.

Watch live newscasts and more 7 On Your Side reports on your favorite streaming devices, like Roku, FireTV, AppleTV and GoogleTV. Just search “ABC7 Los Angeles.”

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