Millions of Americans are dealing with debt overload every day. If you’re struggling to pay your loans, credit cards or other bills, here are some steps you can take to begin managing your debt problems.
- Create a budget.
- Try to get a clear picture of your monthly income and expenses.
- Contact your creditors about easier ways to make your most important bill payments.
- Have a strategy for saving money on interest and fees.
- Consider getting help from a reputable credit counselor.
- Know your rights if a debt collector contacts you.
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Teaching Suggestions
- Have students debate this issue “Is it possible to live without using any form of consumer credit”.
- Ask students if they have created a budget, borrowed to finance a car, and have a strategy for saving money on interest or fees.
Discussion Questions
- What factors should be considered when a person is determining the amount of credit he or she should take on?
- What actions are commonly recommended if a person has difficulty making credit payments?
Melissa Hart
Focus on Personal Finance, 7e 