If you are having trouble getting out of lingering debt, here are some resources to help guide you. To learn more, click here.
Self help:
Track your spending habits and make a budget. Utilize the 50/30/20 ratio as a starting point: 50% of your income for essentials, 30% for wants, 20% for savings/debt pay off. Adjust that ratio to what works for you.
Talk to your creditor, lender, or collector
Develop a strategy to help prioritize
Credit counseling:
Utilize free educational materials or workshops
Seek advice from a professional credit counselor
Check out our credit counseling document here
Debt settlement: you pay an agreed upon lump sum and part of your debt is forgiven. This will negatively impact your credit score for seven years, but in some cases may be best in the long run.
Debt consolidation loans: a single loan you use to pay off multiple debts. This may be an option for you if you can qualify for a low interest rate. The risk, however, can be high if you are unable to make your payments.
Bankruptcy: a federal legal process that frees an individual or business from their debts. The creditor is repaid based on the individual’s or business’s assets available for liquidation.
Credit repair: when a third party attempts to get inaccurate or negative information removed from your credit report in exchange for payment.