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

Protecting Your Credit When Closing Joint Accounts After Divorce or Separation
Divorce or Separation

Protecting Your Credit When Closing Joint Accounts After Divorce or Separation

Divorce or separation forces you to untangle money. Joint credit accounts are often the messiest part. A joint account belongs to both people in the...

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How Divorce or Separation Can Affect Your Credit and How to Protect It
Divorce or Separation

How Divorce or Separation Can Affect Your Credit and How to Protect It

Divorce or separation can turn your financial life upside down. One important thing to understand is that your marital status is not part of your...

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The Minimum Payment Trap: How Financial Illiteracy Fuels Credit Card Debt
Financial Illiteracy

The Minimum Payment Trap: How Financial Illiteracy Fuels Credit Card Debt

Many middle-class consumers carry credit card balances from month to month. When the statement arrives, they look at the minimum payment due and pay...

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Your 40s Are the Best Time to Fix Your Credit for the Long Haul
40s

Your 40s Are the Best Time to Fix Your Credit for the Long Haul

Your 40s are often a busy decade. You may be earning more than you did in your 20s and 30s, but you may also be juggling a mortgage, car payments...

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Popular Articles

Understanding the Timeline of the Debt Settlement Journey
How to Budget for Credit Card Payments Without Sacrificing Your Lifestyle
How Your Debt-to-Limit Ratio Shapes Your Credit Score
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 new credit card increases your total available credit. If your balances remain the same, this instantly lowers your overall credit utilization ratio, which is a key factor in your credit score. However, this only works if you avoid using the new card for purchases.

Seek credit union small-dollar loans, nonprofit emergency assistance programs, or payment plans with creditors. Avoid quick-fix schemes and prioritize financial counseling.

The DTI is a key metric calculated by dividing your total monthly debt payments by your gross monthly income. A DTI above 36-40% is a strong indicator of being overextended, as it shows a dangerous proportion of income is already committed to debt.

Without a financial buffer, any unexpected expense—a car repair, medical bill, or period of unemployment—forces individuals to rely on high-interest credit cards, payday loans, or other forms of borrowing to survive, instantly creating or worsening debt.

Understand your insurance coverage, save in an HSA or FSA, inquire about costs upfront, and seek in-network providers. Build an emergency fund to cover unexpected medical costs.