Lots of people have debt, but it’s mainly a problem if you can’t pay it back. That’s when debt starts to hurt your credit — and when you might start hearing from debt collectors. You can turn it around, but it takes time. And there are people who can help you get out of debt, but choose carefully.
Start with the basics: Make a budget for the month and stick to it. Look for ways to spend less. Put that money toward paying down your debt.
Contact your lenders. Call the company you owe money to, tell them why you can’t pay, and ask if you can pay less each month.
Talk to your PFM. Ask for help, or a referral to a reputable credit counselor. You might also find legitimate help from a credit union, local university, or the US Cooperative Extension Service.
Interview the credit counselor before you sign up. The best ones won’t promise to fix all your problems. They also won’t charge you money before they do anything. If they do, walk away. Ask them:
- Are you licensed to work here?
- What will you do to help me?
- How much do you charge?
- Do you have free education and information?
Your credit counselor can help you call companies where you owe money. Some companies let you pay less every month if it helps you pay your bills.
Don’t pay anyone to help you apply for student loan forgiveness. Nobody can get your loans forgiven faster. If anyone says they need your FSA ID to help you, don’t share it —that’s a scam. They can cut off contact between you and your servicer — and even steal your identity.
If you have a student loan from the government, contact the Department of Education (ED) at StudentAid.gov or 1-800-4FED-AID (1-800-433-3243). Stay up on the latest news from ED about its student loan debt relief program.
Don’t trust someone who contacts you saying they're affiliated with the Department of Education. Scammers use official-looking names, seals, and logos. They promise special access to repayment plans. None of that is real. If you’re not sure if the “offer” is legit, hang up and call your federal student loan servicer directly.
