Managing Your Debt Wisely

Life has a funny way of throwing us a curveball or two sometimes. Everything is going smoothly one minute, and then the next minute brings a challenge. Those unanticipated times may make debt repayment difficult. If you're facing tight financial times, here are some ways to get back on track.

 

If unplanned circumstances make it hard to pay back a loan or credit card, you may have options to get your finances back on track. Credit reporting agencies are alerted after a month of late or missed payments, so the key is to act early, before the problem grows. Find out more about what to do when cash is tight.

 

If you know repayment is going to be a problem, it’s a good idea to reach out and talk to your creditors because they may have solutions that fit your situation. If you can, estimate the specific dollar amount you can afford to pay each month. Be prepared to discuss issues, such as how long you think the disruption may last, and follow up with supporting documents, such as proof of unemployment or illness.

Learn more about how to talk to creditors.

 

Bravo! You've worked hard and made progress on managing your debt. As you move forward, it can be helpful to establish new habits, such as taking on debt only when you really need it. Having too many accounts with balances can be hard to manage and may lower your credit score. This article provides nine helpful tips for smart debt management.