AI tools to help manage debt - 5 EYEWITNESS NEWS

AI tools to help manage debt

People are using artificial intelligence more and more, including when it comes to money.

According to Money Management International, their clients are finding them by asking AI for help getting out of debt.

“Sixty percent of these AI-referred clients have personal loans,” Ted Rossman, with Money Management International, said.

Personal loans are unsecured loans; it’s often cash used for a number of things, with Rossman adding, “It tends to be more consumer debt.”

MMI says clients referred from ChatGPT carry an average of $42,500 in debt, which is above the overall average they see.

“It’s practical expenses, it’s medical bills, it’s car repairs, it’s groceries,” said Rossman.

While these AI tools can be helpful, MMI says to be wary and do your research.

“Don’t just treat it as absolute fact because an AI tool recommended it,” Rossman said.

He also says to get a second opinion.

“We have free initial consultations … to help you outline a few different options,” Rossman said. “Don’t hide from it. It’s not going to get better on its own; you want to take that first step.”

Cybersecurity experts warn you should never give account numbers, pins or other passwords to ChatGPT.

That information isn’t encrypted, meaning a third party could access your sensitive information.