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

When a Debt Collector Contacts You About an Old Debt
Debt Collection

When a Debt Collector Contacts You About an Old Debt

An old debt can feel like a ghost that refuses to leave. You thought the account was behind you, then a collector calls or sends a letter demanding...

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Why Paying Before Your Statement Closes Can Lower Credit Utilization
Credit Utilization Ratio

Why Paying Before Your Statement Closes Can Lower Credit Utilization

Credit utilization ratio is one of the biggest parts of your credit score that you can control. It compares how much of your available credit you are...

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How to Avoid Debt Settlement Scams Before You Sign Anything
Debt Settlement

How to Avoid Debt Settlement Scams Before You Sign Anything

Debt settlement sounds like a lifeline when credit card balances and medical bills feel impossible. A company promises to cut what you owe, stop...

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How Regular Credit Report Monitoring Prevents Costly Surprises
Credit Report Monitoring

How Regular Credit Report Monitoring Prevents Costly Surprises

Your credit report is a detailed record of how you have handled borrowed money. It lists your accounts, payment history, balances, and the companies...

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Popular Articles

Medical Debt and Your Credit: What Middle-Class Families Need to Know
The Hidden Cost of Utility Disconnection Fees and How to Avoid Them
The Hidden Costs of Settling a Debt with a Collection Agency
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

Even while repaying debt, contribute a small, fixed amount to savings automatically each month. Treat it as a non-negotiable bill. This "snowball" approach for savings builds the habit and provides growing protection.

A common and effective budgeting rule is the 50/30/20 rule: 50% of your income for needs (rent, food), 30% for wants, and 20% for savings and debt repayment. If your debt is significant, you may need to temporarily increase that 20% by reducing your "wants" category.

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.

Enrolling in a DMP itself is not reported to the bureaus. However, creditors may note that accounts are being paid through a counseling plan, which some lenders may view negatively, though the positive impact of consistent on-time payments usually outweighs this.

This 30% factor primarily focuses on your credit utilization ratio—the amount of revolving credit you're using compared to your total available limits. A high utilization rate (above 30%) suggests you are overextended and reliant on credit, which lowers your score.