Here’s where to start when you’re staring down an insurmountable debt.
Do-It-Yourself Debt Help
No one can help you like you can help yourself. Look at your finances, see where you can make some spending cuts, and pay that extra money forward to make more aggressive progress against your debt
In most cases, this means trading multiple high-interest balances for one larger loan with a lower interest rate (or, with a balance transfer card, an introductory period with 0% APR). If you qualify for a loan consolidation or new balance transfer card, it’s probably going to help your credit score immediately — the increase in your overall credit limit will reduce the amount of your available credit that you’re using, called your utilization rate.
If you’ve fallen behind on payments for several months, debt settlement may be an option for you— It’s an opportunity for you to negotiate a lower balance to pay, as long as you abide be the terms.
Pay a company a single flat rate every month to manage your debt for you. This will save you a lot of money when it comes to interest and fees. Alternatively, getting free or low-cost consumer credit counseling from a non-profit agency can help you to evaluate all of your options and come up with a plan that works best for you.