I have some debt and I want help on what to do.

There are varying degrees of debt and the best way to respond to your debt challenge depends on a variety of factors including how much debt you have, your ability to pay it off and how long it will take you to pay off, your credit needs, and your assets (like owning a home), among other factors.

Please note, these resources are not for major debt problems. If you are over your head in debt and/or your house is at risk, please see our financial crisis section here. However, the skills taught in the resources below are a must for proper money management and you may want to return to them after you have dealt with your crisis.

I. Let’s start off with what not to do if you have a debt challenge.

Please click here for steps on how to respond to a financial crisis.

Now you know what not to do, let’s talk about dealing with debt.
Painting in very broad strokes, there are three ways to deal with a debt problem.

II. Dealing with debt

OPTION 1: Budgeting your way out of it.

In a nutshell, this involves increasing your income or cutting expenses and using the extra money to pay off your debt. Step 1 in this process is to make a debt list and step 1A is to make a budget.

For further instruction, please:
1) take a CENTS in person money management class
2) go to a financial clinic
3) take MoneySense online
4) take Financial Evaluator online
All of the above programs can be accessed from the “Programs” tab on this website.

OPTION 2: Using a reputable and certified credit counseling agency.

We are not endorsing all the so-called debt solution companies that are out there. Tread very carefully in this field, as there are a lot of businesses looking to make money off of financially vulnerable people.

STAY AWAY FROM DEBT CONSOLIDATION OR CREDIT REPAIR COMPANIES.

BE VERY CAREFUL WHEN WORKING WITH CREDIT COUNSELING COMPANIES.

Here is an article to help you make a wise choice when searching for a credit counseling company. Click here for Article- How to choose a CREDIT COUNSELOR

OPTION 3: Bankruptcy

Bankruptcy can be an effective solution, but it comes with consequences. Please click here to learn more about both the relief bankruptcy provides, its limitations, and its consequences.