For-Profit Debt Relief

Do both simultaneously if possible. Contribute enough to your employer's 401(k) to get the full match (it's free money), then aggressively tackle high-interest debt. For low-interest federal student loans, a balanced approach is often better than sacrificing retirement savings.

No. DMPs administered by credit counseling agencies are only for unsecured debt like credit cards and personal loans. Secured debts require direct negotiation with the lender or other legal solutions.

Generally, avoid closing accounts, especially older ones, as it reduces your total available credit and can hurt your credit utilization ratio. The main exception is if the card has a high annual fee that isn't worth the cost or if you cannot control the spending temptation.

Add up the minimum payments for all your debts (credit cards, personal loans, auto loan, student loans, etc.) for one month. Divide that total by your gross (pre-tax) monthly income. Multiply by 100 to get a percentage.