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 to Lower Your Debt-to-Limit Ratio Before It Hurts Your Credit
Debt-to-Limit Ratio

How to Lower Your Debt-to-Limit Ratio Before It Hurts Your Credit

Your debt-to-limit ratio compares the balances on your revolving accounts to their total credit limits. If you have a $5,000 limit and owe $1,500...

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How to Avoid For-Profit Debt Relief Traps That Make Your Debt Worse
For-Profit Debt Relief

How to Avoid For-Profit Debt Relief Traps That Make Your Debt Worse

When you fall behind on credit cards or personal loans, offers from for-profit debt relief companies can seem like a lifeline. They promise to cut...

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How to Avoid Debt Settlement and Protect Your Credit
Debt Settlement

How to Avoid Debt Settlement and Protect Your Credit

Debt settlement may sound like a quick fix, but it usually means the problem has already gone too far. Settlement is when you or a company tries to...

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How to Lower Your Credit Utilization Without Opening a New Card
Credit Utilization

How to Lower Your Credit Utilization Without Opening a New Card

Credit utilization is one of those phrases that sounds more complicated than it actually is. In plain terms, it’s the percentage of your available...

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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

Be cautious. If the debt is near the end of your state's statute of limitations for lawsuits, making a payment could restart that clock, making you vulnerable to a lawsuit. Weigh the age of the debt and your goals carefully.

A financial hardship program is a temporary arrangement offered by a creditor or loan servicer that provides modified payment terms to borrowers experiencing a legitimate financial difficulty, such as job loss, medical emergency, or military deployment.

Your DTI (total monthly debt payments divided by gross monthly income) is a key metric. Keeping it below 36% ensures you have enough income to cover your debts and living expenses without needing to borrow more, preventing overextension.

This is the percentage of your available credit you are using. It is a major factor in your credit score. A ratio above 30% hurts your score, and maxing out cards (100% utilization) causes severe damage.

It can be, but only if you do not roll the negative equity from your old loan into the new one. This often requires a significant down payment to break the cycle of debt.