If your credit card balances aren’t going down— or you’ve fallen behind —you’re not alone. Many households are balancing debt alongside increasing living costs. The steps below can help you evaluate your situation and identify realistic options for moving forward.

Make a List of  Debts

You can get free copies of your credit reports from AnnualCreditReport.com. This site will not provide a credit score, but it does provide reports from all three credit reporting agencies. Use this information, along with your bill statements, to create a list of all debts.  Include balances owed, interest rates, and payment status (for example: current, 30–90 days late, or in collections).

Evaluate Income and Expenses

Realistically assess income, expenses, and current bill paying status. Are you able to pay for essential expenses and minimum required credit card payments? If so, continue with the next sections. If not, skip ahead to “legal options.”

Check out the PowerPay Debt Management Tool

This free software was developed by Utah State University. It allows you to analyze debts and calculate:

• The month and year each debt will be eliminated.
• Impact of making extra payments.
• Total cost of different payment strategies.

The best part is that PowerPay is a confidential do‑it‑yourself tool. So, you will not be bombarded with sales pitches.

Consider Credit Counseling

 If you need help with a debt management plan, consider contacting a nonprofit credit counseling agency. A good credit counselor will review your total financial picture and help you work out a realistic plan. They may also be able to help you negotiate better interest rates. Find out more at the National Foundation for Credit Counseling.

Explore Legal Options

If you are already behind on payments, facing collections, or unable to keep up with basic expenses, legal options could be worth considering.

Shop carefully for good legal advice. Avoid using agencies that offer vague promises or too –good-to- be true outcomes. Understand the potential tax and credit ramifications.

Legal options include debt settlement and bankruptcy. Debt settlement involves negotiating with creditors to pay less than the amount owed. Bankruptcy is a legal procedure designed to help individuals discharge (Chapter 7) or develop a repayment plan (Chapter 13). Find out more about bankruptcy at the U.S. Courts website United States Courts

Free 1-1 Financial Education

UF/IFAS Extension Hillsborough County offers free, 1-1 financial education to residents of Hillsborough County. A 1‑1 session can help you map out a plan tailored to your situation and financial goals. More information is available on the Personal Finance page for Hillsborough County through UF/IFAS Extension.

Microsoft Co-Pilot was used to improve format, clarity, and grammatical structure.

0