Debt Management

FAQs About Debt Management Plans

A debt management plan (DMP) is an agreement between a debtor (that’s you, the person in debt) and a creditor (think: your bank or your credit card company) that tackles your outstanding debt. In a nutshell, a DMP groups your outstanding unsecured debts (like your credit cards and medical bills) into one payment and creates an affordable four- to six-year repayment plan. A debt manager will work with your...

Debt Management: Signs This Is for You

If you’re in debt in the US, you’re in good company. At the end of 2019, American household debt surged past $14 trillion (yep, that’s TRILLION with a “T”) for the first time. Most of this debt is in the form of mortgages, but credit card debt also hit a record high of $930 billion. But while you can take solace in the fact that you’re not alone, don’t...

Consolidating Your Debt? Here’s What NOT to Do

Every month, you face a mound of credit card and bank statements (or your inbox fills up with them, and you have to write a separate check (or perform an individual internet transfer) for each of them. All the while, you feel like you’re no closer to zeroing out your balance on any of those debts. To get out of this frustrating and time-consuming loop, many people opt for...

Debt and the Brain: Studies Show Harmful Effects

“It’s such a wonderful feeling to be in debt,” said no one. Ever. Owing someone weighs heavy. Just ask anyone who’s ever been beholden to someone! But more than just an icky feeling, there’s proof that being indebted to another can actually be bad for your health. Indeed, eliminating debt might have much more far-reaching implications than simply boosting your bank account. Getting rid of IOUs can ease anxiety...

Don’t Let Sneaky Expenses Bust Your Budget 

A detailed, well-planned budget is one of your best tools in your quest for financial responsibility and a good defense against overspending. However, even the savviest of budgeters can find themselves in tight money situations thanks to sneaky expenses that inevitably seem to crop up. Here is a list of some of the most commonly missed or forgotten budget items, and some tips on how to plan for them....

Debt Reduction Mistakes to Avoid

Do a quick Google search of something like “pay down debt” or “debt advice” or “credit card payoff” and one thing becomes very clear: Just about everyone has an opinion about the best way to pay down debt. Some folks are huge proponents of the snowball method; others are staunch believers in tackling the debt with the highest interest rate first – no matter what. Most debt repayment methods...

Best Apps and Websites for Budgeting and Saving

It’s easy to spend money online – too easy, really. It’s near-impossible to surf the web without being bombarded by advertisements and sales emails targeted to your exact preferences and interests. With a few clicks, you can find yourself spending money you don’t have on things you don’t really need. But that’s only part of the story. When it comes to your finances, there’s more to the Internet than...

Friending and Spending Social Media and Money

There’s more to social sharing sites than witty status updates, silly memes, and cat photos. Social media can influence our behavior in all kinds of ways, including our spending habits. This makes sense, if you think about it: There’s the friend whose Instagram feed is an endless stream of perfectly filtered shots of gourmet meals. And the cousin whose Facebook feed seems to be completely composed of pricy home...

Cut These Expenses and Watch Your Savings Grow

Want to make this a great year for your finances?  The new year is a great time to set some money-related goals, whether you’d like to pay off your high interest credit card debt, beef up your emergency fund, or save up for a big purchase like a vacation or a down payment on a house. Of course, whatever your goal is, you’ll need to free up some extra...

What is a Debt Management Plan? And is it Right for You?

Wouldn’t it be great if it were as easy to get out of debt as it is to get into debt?  All it takes is a few months of overspending to create a mound of debt that can take decades to pay back.  There’s no quick fix when it comes to paying off credit cards – and that’s especially true if you’re dealing with several cards with high balances....