How to deal with debt when you've already cut back everywhere
If cutting expenses isn't enough to manage your debt, these strategies may provide you with more meaningful relief.
When your budget has been trimmed to a bare minimum, it can be challenging to see a way out of high-interest debt. However, there are still options to consider. One approach is to ask creditors for a hardship plan, which may offer lower minimum payments or reduced interest rates. Another option is to consolidate your debts, potentially securing a loan with a lower interest rate that can simplify your repayment process.
Debt management plans through credit counseling agencies can also be an option, as they may negotiate lower rates and fees with your creditors. Debt settlement is another possibility, although it can negatively impact your credit score and may result in taxes on forgiven debt. Ultimately, if all else fails, bankruptcy could be an option to explore, but it is a significant decision with long-term consequences.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
