Debt Forgiveness Always Has a Catch

iStock_000076779733_Small-570x225The Credit Card Debt Forgiveness Act and the Obama Student Loan Forgiveness Program don’t exist. The IRS won’t erase your tax debt just because you say you can’t pay it.

Even when debt forgiveness options are available, they can be loaded with traps such as hard-to-follow rules, unexpected tax bills and damage to your credit scores.

You need to know all this because there’s a thriving industry of scam artists telling you otherwise. In their ads and email come-ons, the bad guys try to convince people drowning in debt that there are ways to escape without serious consequences.

In my latest for NerdWallet, which debts can be forgiven and the catches that come with forgiveness.

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