Are You OverExtended?

This is a strategy where you make minimum payments on all debts but put any extra money toward the debt with the highest interest rate first. This method saves the most money on interest over time.

This is a letter you can send to a collector demanding they prove you legally owe the debt and that they have the right to collect it. They must cease collection efforts until they provide this validation. This is a powerful tool to ensure the debt is legitimate.

Your credit report is the detailed history of your credit accounts, payments, and inquiries. Your credit score is a three-digit number calculated from the information in your report. You have many scores, but you only have three main reports.

The most critical first step is to honestly confront the situation. This means gathering all financial statements, calculating your total debt, income, and expenses, and acknowledging the full scope of the problem without judgment. You cannot fix what you haven't fully assessed.