Friday’s need-to-know money news

Today’s top story: There’s more than one way to slay a debt. Also in the news: How to know when it’s OK to spend, 3 steps to spring cleaning your credit card debt, and what to do when you desperately need help with medical bills.

There’s More Than One Way to Slay a Debt
These key points could help.

How to Know When It’s OK to Spend
Loosening the purse strings.

3 Steps to Spring-Cleaning Your Credit Card Debt
Time to shake the dust off.

What To Do When You Desperately Need Help With Medical Bills
Looking into medical debt forgiveness.

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.