A lot of people have debt, whether it be from school bills, mortgages, auto loans, or even overspending on credit cards. It can become an even bigger issue when you can’t repay the debt and debt collectors start calling. You can turn the situation around, but it will take some time.
First, you should make a budget and stick to it. Find ways to spend less money and use that money to pay down your debt. Contact the lenders you owe money to and explain your situation. In some cases, you may be able to lower your monthly payment. If the lender is for a student loan from the government, you can contact the Department of Education at StudentAid.gov.
You can contact a credit counselor from a non-profit organization. The best-certified credit counselors won’t promise to fix all your issues and they won’t charge you a lot of money before doing anything. These may be available from a credit union, local university, or the U.S. Cooperative Extension Service.
If you go with a credit counselor, interview them first and understand how they can help and how much it will cost you. They may have free information and education that could help.
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