[Video] Strategies for Paying Off Debt
There are many different strategies for repaying debts. How can you pick the one that fits your budget?
Debt management is not a one-size-fits-all solution but rather an amalgamation of choices you can make to best pay off your outstanding debts. If you have a large amount of debt, whether it's "good debt" like a mortgage or student loans, or other debts like credit card debt, it can impact your credit scores depending on how well you manage the debt. Whatever your reason for wanting to reduce what you owe, like enhancing your credit history before applying for a mortgage or loan, success starts with building a strategy that will move you forward. Creating debt management plans, debt reduction strategies, or seeking the help of a credit counselor are all viable ways to help with your debt management. However, seeking the best solution depends on your unique situation, along with the type and amount of debt you owe. Other debt reduction strategies include short-term and long-term strategies to help better manage the amount of debt you owe, so you can plan ahead while still taking your lifestyle into account. Meanwhile, credit counseling is when a person or team sets you up with a budget and teaches you money management skills while creating a plan for helping eliminate your debts. However, one should look out for credit counseling scams, which could put you deeper in debt.
There are many different strategies for repaying debts. How can you pick the one that fits your budget?
If you’re a borrower facing financial difficulties, learn how negotiating with your lender may help you get a better handle on your debt.
If you’re juggling multiple debts, these strategies may help you prioritize your repayment efforts.
If you’ve fallen behind on paying your bills, these six steps can help you get back on track.
Dealing with a debt collector can be intimidating and costly. Here’s when you may be able to bypass debt collectors and work with your original creditor to repay what you owe.
You may think that all debt is the same, but loans and other debts can have different impacts on your credit scores.
Your credit utilization ratio is a factor in calculating your credit scores. Learn more about credit utilization and how it can impact your credit.
A wage garnishment is when money is withheld from an employee’s earnings to pay back debt. Learn about garnished wages and what to do if it happens to you.
When considering debt consolidation, it's good to know how this repayment strategy might impact your credit. At Equifax, we cover why debt consolidation may be a good idea, including the pros and cons.
Collection agencies are used by creditors and lenders to collect funds that are past due or in default. Learn more about your rights and what collection agencies can and cannot do.
What can you do to make sure that you stay in good standing with your lenders and creditors?