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

The Overextended Installment Loan: When Fixed Payments Become a Financial Straitjacket
Installment Loan

The Overextended Installment Loan: When Fixed Payments Become a Financial Straitjacket

An installment loan is one of the most common ways people borrow money. You get a lump sum, then pay it back in equal monthly payments over a set...

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The Critical Role of On-Time Payments in Your Credit Health
On-Time Payments

The Critical Role of On-Time Payments in Your Credit Health

Your credit score is one of the most important numbers in your financial life. It determines whether you get approved for a car loan, a mortgage, or...

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How the Debt Avalanche Method Helps You Prevent Future Debt
Debt Avalanche Method

How the Debt Avalanche Method Helps You Prevent Future Debt

If you are carrying balances on credit cards or personal loans, you have probably felt that sinking feeling when the monthly statement arrives. The...

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When You Owe More Than Your Car Is Worth
Auto Debt

When You Owe More Than Your Car Is Worth

If you have an auto loan, you might have heard the term “upside down” or “negative equity.“ What that means is simple: the amount you still owe on...

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Popular Articles

How Non-Profit Credit Counseling Can Help You Avoid Bankruptcy
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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

Nonprofit credit counseling agencies provide advice and may offer a Debt Management Plan (DMP), where they negotiate lower interest rates with creditors and combine payments into one monthly amount, often with reduced fees.

Options include: 1) Selling the asset (if you have positive equity), 2) Voluntary surrender (returning the asset to the lender, though you may still owe a deficiency balance), 3) Refinancing (if you qualify for a lower payment), or 4) Negotiating a short sale (for a home, where the lender agrees to a sale for less than the owed amount).

Yes, but they are typically low and regulated. Agencies may charge a small setup fee (often waived for hardship) and a monthly maintenance fee, usually around $25-$50. These fees must be disclosed upfront.

Even a small emergency fund ($500-$1,000) prevents unexpected expenses from derailing your budget and forcing you deeper into debt. It should be a fixed category in your budget until funded.

Distinguishing between essential expenses (needs) and discretionary spending (wants) allows you to prioritize effectively. This clarity helps prevent unnecessary purchases that are financed with debt, ensuring your financial resources are allocated to necessities first.