CREDIT & DEBT HELP

Are you using your credit cards to pay your monthly bills? If you're currently in debt and saving little or nothing, here are some indicators that you might be in financial trouble:

Signs of Financial Trouble

Eliminating Debt

To eliminate debt, you must take action. Here are some steps you should take:

• Contact your creditors in writing and request that they help accept partial payments from you for a temporary amount of time. Contact secured creditors first (such as a house or car).
• Meet with an accredited counseling service for assistance with creditors, payment plans and education.
• Reduce spending (see the Budget section for more information).
• Find additional income sources.
• Look at your finances to determine the extent of your debt and the amount of your assets.
• Determine if you can sell assets to pay your debts, such as cash, real estate, stocks, cards, furniture, jewelry, electronics, valuable collections, retirement plans and clothes.
• Or move credit to accounts with smaller interest rates.

Seek Help from a Licensed, Reputable Organization

You can meet with an accredited counseling service to facilitate negotiations with creditors, create payment plans and help educate consumers. Tthe Consumer Credit Counseling Service of Maryland and Delaware is one such organization, with various locations through Maryland: http://www.cccs-inc.org/locations

Avoid Bankruptcy

 

Next: Risk Management (Insurance)

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This site is brought to you by Towson University's Financial Services, DECO EEOL and the Maryland Coalition for Financial Literacy with a grant from the BRAC Higher Education Investment Fund, administered by the Maryland Higher Education Commission.