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

When Student Loan Payments Take Over Your Budget
Student Loans

When Student Loan Payments Take Over Your Budget

For many middle-class consumers, student loans are simply a part of everyday life. You took out loans to pay for college, earned your degree, and now...

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How a Mix of Credit Types Can Boost Your Credit Score
Diverse Credit Mix

How a Mix of Credit Types Can Boost Your Credit Score

When you think about your credit score, you probably focus on paying bills on time and keeping your balances low. Those two habits matter most, but...

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The Hidden Dangers of a High Debt-to-Limit Ratio
Debt-to-Limit Ratio

The Hidden Dangers of a High Debt-to-Limit Ratio

Imagine your credit card has a limit of $10,000, and you currently owe $6,000. That means your debt-to-limit ratio, which is also called your credit...

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Income Shock: How to Protect Your Credit Score When Your Paycheck Drops
Income Shock

Income Shock: How to Protect Your Credit Score When Your Paycheck Drops

An income shock is exactly what it sounds like: a sudden, unexpected drop in the money you bring home each month. It could come from losing a job...

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Popular Articles

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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

Every debt payment has a dual effect: it reduces your liabilities (the debt balance) and, because you use cash (an asset) to make the payment, it reduces your assets by an equal amount. Therefore, the act of paying debt itself is net worth neutral.

Generally avoid this—it can trigger taxes/penalties and jeopardize your future security. Explore financial aid, negotiation, or low-interest loans first.

Secured debt is a loan that is backed by an asset, known as collateral. This collateral acts as a guarantee for the lender. If the borrower fails to make payments (defaults), the lender has the legal right to seize the asset to recover the owed amount.

This strategy involves making minimum payments on all debts but putting any extra money toward the smallest debt balance first. The psychological win of paying off an entire debt quickly provides motivation to continue.

A DMP, administered by a credit counseling agency, consolidates payments and negotiates lower interest rates with creditors. It requires closing credit cards but can simplify repayment.