Are You OverExtended?

Are you managing your debt, or is it managing you? Practical guidance for managing personal debt and credit.

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  • Spending more than paying off
  • Trouble paying bills
  • Buying without down payments
  • Maxed out credit lines
  • Retirement not properly funded
  • No payoff strategy
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Recent Articles

How Lifestyle Inflation Turns a Higher Income Into Higher Credit Card Debt
Lifestyle Inflation

How Lifestyle Inflation Turns a Higher Income Into Higher Credit Card Debt

A raise often feels like proof that you are finally getting ahead. But if your spending rises to match every new dollar, your bank account may look...

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How Financial Hardship Programs Can Protect Your Credit Before Payments Slip
Financial Hardship Programs

How Financial Hardship Programs Can Protect Your Credit Before Payments Slip

When a middle-class household hits a rough patch, the problem is often not a lack of planning. It is that the plan did not include a sudden job loss...

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How to Use a Financial Hardship Program to Protect Your Credit
Financial Hardship Programs

How to Use a Financial Hardship Program to Protect Your Credit

A financial hardship program is a temporary agreement between you and a creditor that changes your payment terms because of a job loss, medical...

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How Your Debt-to-Limit Ratio Shapes Your Credit Score
Debt-to-Limit Ratio

How Your Debt-to-Limit Ratio Shapes Your Credit Score

Your debt-to-limit ratio, often called credit utilization, is the amount of credit you’re using compared to the total credit available to you. If you...

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Video

Consumer Credit Tips

Each video breaks down one practical way to get out from under debt and stay there — straightforward advice on credit, budgeting, and the habits that keep you from getting overextended again.

FAQ

Frequently Asked Questions

A PTI below 15% is generally considered manageable. A ratio between 15% and 20% may require careful budgeting. A PTI exceeding 20% is often a warning sign of being overextended, as it leaves a dangerously small portion of income for other living expenses and savings.

Stop using credit immediately, list all debts by interest rate, and prioritize repayment using the avalanche method (highest interest first). Consider selling lightly used luxury items to reduce balances.

The most problematic debts are often a combination of lingering student loans, large mortgages, expensive auto loans, and high-interest credit card debt accumulated from lifestyle inflation, child-rearing costs, or covering budget shortfalls.

No, there is no guarantee. Creditors are not required to accept a settlement offer. You may end up after many months with no settlements reached, but with significantly damaged credit and potentially facing legal action from creditors.

Celebrate small milestones! Paying off a specific card or reaching the halfway point deserves recognition. Find a free or low-cost way to reward yourself. Also, find an accountability partner—a friend or online community—where you can share struggles and successes. Visual trackers can also help you see your progress.