Deal with Debt — Acme Corp Wellness

Get out of debt on your own or with help

Whether it’s from living above your means, expensive medical bills, a job loss, or supporting your parents, you can eliminate debt. The first step is to avoid getting deeper in debt. Limit spending to essentials and follow a plan to pay down the debt.

On your own

Cut up credit cards or put them away until they are paid off.
Starting with the highest priority, make a list of what needs to be paid off – student and other loans, credit cards, etc.
Contact your creditors right away to work out payment plans that you can manage. Do this before debt collectors get involved. If you can’t work out a plan with your mortgage company, contact the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.
Bring in more income from a part time job and selling household items you no longer need at a garage sale or online. Consider selling some of your gold and silver jewelry for cash.

Get professional help from

A professional financial planner through work
The Financial Planning Association (FPA) at 800-322-4237 or plannersearch.org
The National Foundation for Credit Counseling at 800-388-2227 or nfcc.org

Beware of any debt relief service that

Charges any fees before it settles your debts
Pressures you to make “voluntary contributions,” another name for fees
Touts a “new government program” to bail out personal credit card debt
Guarantees it can make your debt go away
Tells you it can stop all debt collection calls and lawsuits
Guarantees that your credit card and any other debt not tied to an asset, such as your house, can be paid off for just pennies on the dollar
Offers to enroll you in a debt management program (DMP) without teaching you skills to budget and manage your money

Action Step

Once you pay the minimum amount of all your credit cards, pay off the credit card or other debt with the lowest balance first. After this is paid in full, pay down the next debt with the lowest balance.