Debt Help and Debt Consolidation Guides

This section covers every realistic route out of debt, from consolidating balances at a lower rate to working with a nonprofit counselor, negotiating a settlement, handling collectors, and understanding what garnishment or bankruptcy actually involves. It is written for people who are behind, close to behind, or simply tired of paying interest and want a plan that holds up.

Which debt help option should you try first?

Start with the cheapest option that fits your situation, and be wary of anyone who asks for money before doing anything. Federal rules bar debt settlement companies from charging a fee until a debt is actually settled, so an advance fee is a warning sign. Nonprofit credit counseling agencies offer a free budget review and can set up a debt management plan with reduced interest rates for a modest monthly fee. Consolidation only helps if the new rate is lower and you stop adding new balances, so check our Credit Scores section first, because your score decides what rate you can get.

If collectors are calling, the Fair Debt Collection Practices Act limits when and how they can contact you, and our Laws & Your Rights section explains how to dispute a debt in writing. Garnishment for most consumer debts is capped at 25 percent of disposable earnings, or the amount above 30 times the federal minimum wage, whichever is less. Avoid Payday Loans as a bridge, and use Money Basics to rebuild a budget that keeps you out of debt.

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