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

Why Credit Utilization Is a Key Credit Score Factor
Credit Score Five Factors

Why Credit Utilization Is a Key Credit Score Factor

Your credit utilization is the share of your available credit that you are using at a given time. If you have a credit card with a $5,000 limit and a...

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Why a Diverse Credit Mix Matters for Your Credit Score
Diverse Credit Mix

Why a Diverse Credit Mix Matters for Your Credit Score

When people work on their credit, they often focus on paying bills on time. That is the most important habit, and it should stay first. But credit...

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What a Debt Collector’s Call Means for Your Credit and How to Respond
Debt Collection

What a Debt Collector’s Call Means for Your Credit and How to Respond

A call from a debt collector can feel like a sudden problem, but it is usually the next step in a longer story. A payment was missed, an account was...

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What’s Actually on Your Credit Report and Why It Matters
Understanding Credit Reports

What’s Actually on Your Credit Report and Why It Matters

Your credit report is a record of how you have handled borrowed money and bills. It is not a score. It is the raw material lenders use to decide...

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Popular Articles

How Age Shapes the Impact of Different Debts
Strategies to Enhance Your Credit Mix Without Additional Debt
Understanding Reaffirmation Agreements in Bankruptcy: A Key Decision for Your Debt
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

Explore ways to increase income (side jobs, selling items) or reduce essential costs (downsizing housing, using public transportation). Seek hardship programs for utilities, rent, or debt.

A DMP does not involve a new loan. Instead, it is a repayment arrangement facilitated by a third party. Debt consolidation involves acquiring new credit to pay off old debts. A DMP is often a better option for those who cannot qualify for a low-interest consolidation loan.

A charge-off is the original creditor's action. They may then assign or sell the debt to a third-party collection agency. The collection account is a separate negative entry on your report from the agency, though both relate to the same original debt.

Home equity (the market value of your home minus what you owe) can be a source of funds through a Home Equity Loan or Line of Credit (HELOC). However, using this equity to pay off unsecured debt is risky because it converts unsecured debt into secured debt—now your home is on the line if you can't pay.

In a Chapter 7 bankruptcy, a reaffirmation agreement is a voluntary contract where you agree to continue paying a secured debt (like a car loan) and remain personally liable for it. This allows you to keep the asset, but it also means the debt is not discharged.