{"id":286942,"date":"2025-08-14T09:33:16","date_gmt":"2025-08-14T14:33:16","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/debt-relief\/paying-down-debt.html"},"modified":"2025-08-14T09:34:55","modified_gmt":"2025-08-14T14:34:55","slug":"paying-down-debt","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/paying-down-debt.html","title":{"rendered":"Paying Down Debt"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><div\n    data-testid=\"fl-general-title\"\n    class=\"fl-general-title fl-flex fl-gap20 fl-items-end\"\n>\n    <div class=\"fl-general-title-heading fl-flex fl-flex-column\">\n        <h1\n            class=\"fl-h1 fl-general-title-title fl-no-spacing\"\n            data-testid=\"fl-general-title-title\"\n        >\n            Paying Down Debt\n        <\/h1>\n        <p\n            class=\"fl-general-title-description fl-text-xl fl-no-margin\"\n            data-testid=\"fl-general-title-description\"\n        >\n            Debt is a reality most people will face at some point in their life. Not all debt is bad, but letting debt carry over month to month or consume your finances can become a huge risk.\n        <\/p>\n    <\/div>\n<\/div>\n\n\n\n<p>Paying down debt can be a daunting task, and there are no &#8220;one-size-fits-all&#8221; solutions. Having the right information is an essential first step as you work towards debt repayment.<\/p>\n<p>Learn about these related topics, or keep scrolling to read about how to pay off debt.<\/p>\n\n\n\n<div\n    class=\"fl-category-overview\"\n    data-testid=\"fl-category-overview\"\n>\n    <div\n        class=\"fl-accordion fl-category-overview-container\"\n        id=\"category-overview\"\n        data-testid=\"fl-accordion\"\n    >\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-1-category-overview\"\n               aria-labelledby=\"button-1-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-1-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-1-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        You Have Options\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-1-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/debt-priority-which-debts-should-you-repay-first.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>Which Debts First?<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/paying-down-debt.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>Debt Options<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/dealing-with-creditors-informally.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>Dealing with Creditors Informally<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n                    <div\n               class=\"fl-accordion-item fl-category-overview-item\"\n               id=\"section-2-category-overview\"\n               aria-labelledby=\"button-2-category-overview\"\n               data-testid=\"fl-accordion-item\"\n            >\n                <h2\n                    class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                    data-testid=\"fl-accordion-header\"\n                >\n                    <button\n                        id=\"button-2-category-overview\"\n                        aria-label=\"Category 1 content\"\n                        aria-expanded=\"false\"\n                        aria-controls=\"section-2-category-overview\"\n                        class=\"fl-accordion-button fl-flex fl-flex-auto fl-justify-between\"\n                        type=\"button\"\n                    >\n                        Help For Debt\n                        <span aria-hidden=\"true\">\n                            <i\n                                class=\"fa fa-angle-down small\"\n                                aria-hidden=\"true\"\n                            ><\/i>\n                        <\/span>\n                    <\/button>\n                <\/h2>\n                <div\n                    class=\"fl-accordion-content\"\n                    data-testid=\"fl-accordion-content\"\n                    id=\"content-2-category-overview\"\n                >\n                    <ul class=\"fl-no-margin fl-list\">\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/bankruptcy-vs-credit-counseling-what-s-the-right-choice-for-yo.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>Credit Counseling Organizations<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/state\/consumer-laws\/interest-rates.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>State Interest Rate Laws<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                                <li class=\"fl-list-control-list-item fl-flex\">\n                            <div class=\"fl-list-control-container\">\n                                <i\n                                    class=\"fa fa-angle-right small\"\n                                    aria-hidden=\"true\"\n                                ><\/i>\n                            <\/div>\n                            <div class=\"fl-list-control-text\">\n                                <a\n                                    href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/do-s-and-don-ts-refinancing.html\"\n                                                                        class=\"fl-list-item-link\"\n                                >\n                                    <span>Refinancing Do&#039;s and Don&#039;ts<\/span>\n                                <\/a>\n                            <\/div>\n                        <\/li>\n                                            <\/ul>\n                <\/div>\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<section class=\"fl-faq\">\n    <div\n            class=\"fl-accordion fl-faq-container fl-container\"\n            id=\"faq\"\n            data-testid=\"fl-accordion\"\n    >\n        <div class=\"fl-faq-heading-row fl-flex\">\n            <ul\n                    class=\"fl-faq-buttons fl-flex fl-flex-row fl-items-center fl-no-spacing\"\n                    aria-label=\"View all Frequently Asked Questions\"\n            >\n                <li class=\"fl-faq-buttons-item\">\n                    <button\n                            id=\"button-show-faq\"\n                            data-testid=\"button-show-faq\"\n                            class=\"fl-accordion-filter-button fl-accordion-filter-button-show\"\n                            type=\"button\"\n                            data-focus-other-button=\"true\"\n                            aria-current=\"true\"\n                            aria-disabled=\"true\"\n                            disabled=\"\"\n                    >\n                        Show All\n                    <\/button>\n                <\/li>\n                <li><span aria-hidden=\"true\">|<\/span><\/li>\n                <li class=\"fl-faq-buttons-item\">\n                    <button\n                            id=\"button-hide-faq\"\n                            data-testid=\"button-hide-faq\"\n                            class=\"fl-accordion-filter-button fl-accordion-filter-button-hide\"\n                            type=\"button\"\n                            data-focus-other-button=\"true\"\n                            aria-current=\"true\"\n                            aria-disabled=\"true\"\n                            disabled=\"\"\n                    >\n                        Hide All\n                    <\/button>\n                <\/li>\n            <\/ul>\n        <\/div>\n        <div class=\"fl-faq-questions\">\n            <h3\n                    class=\"fl-faq-title fl-no-margin\"\n                    data-testid=\"fl-faq-title\"\n            >\n                Learn About Paying Down Debt\n            <\/h3>\n                            <div\n                        class=\"fl-accordion-item\"\n                        id=\"section-1-faq\"\n                        aria-labelledby=\"button-1-faq\"\n                        data-testid=\"fl-accordion-item\"\n                >\n                    <h4\n                            class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                            data-testid=\"fl-faq-question-header-1\"\n                    >\n                        <button\n                                id=\"button-1-faq\"\n                                aria-expanded=\"true\"\n                                aria-controls=\"content-1-faq\"\n                                class=\"fl-accordion-button fl-accordion-button-h4 fl-flex fl-flex-auto fl-justify-between is-opened fl-text-underline\"\n                                type=\"button\"\n                        >\n                            Which Debts First?\n                            <span aria-hidden=\"true\">\n                                <i\n                                        class=\"fa fa-angle-down small\"\n                                        aria-hidden=\"true\"\n                                ><\/i>\n                            <\/span>\n                        <\/button>\n                    <\/h4>\n                    <div\n                            class=\"fl-accordion-content active\"\n                            data-testid=\"fl-faq-question-content-1\"\n                            id=\"content-1-faq\"\n                            role=\"region\"\n                            aria-labelledby=\"button-1-faq\"\n                    >\n                        <p>Not all debts are the same. Some carry higher interest rates, for example. Learn how to <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/debt-priority-which-debts-should-you-repay-first.html\">prioritize your debts<\/a> in order to cut down on your debt burden in the most efficient way possible.<\/p>\n\n                    <\/div>\n                <\/div>\n                            <div\n                        class=\"fl-accordion-item\"\n                        id=\"section-2-faq\"\n                        aria-labelledby=\"button-2-faq\"\n                        data-testid=\"fl-accordion-item\"\n                >\n                    <h4\n                            class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                            data-testid=\"fl-faq-question-header-2\"\n                    >\n                        <button\n                                id=\"button-2-faq\"\n                                aria-expanded=\"true\"\n                                aria-controls=\"content-2-faq\"\n                                class=\"fl-accordion-button fl-accordion-button-h4 fl-flex fl-flex-auto fl-justify-between is-opened fl-text-underline\"\n                                type=\"button\"\n                        >\n                            Can I Handle My Debt With Creditors Informally?\n                            <span aria-hidden=\"true\">\n                                <i\n                                        class=\"fa fa-angle-down small\"\n                                        aria-hidden=\"true\"\n                                ><\/i>\n                            <\/span>\n                        <\/button>\n                    <\/h4>\n                    <div\n                            class=\"fl-accordion-content active\"\n                            data-testid=\"fl-faq-question-content-2\"\n                            id=\"content-2-faq\"\n                            role=\"region\"\n                            aria-labelledby=\"button-2-faq\"\n                    >\n                        <p>You have options for <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/dealing-with-creditors-informally.html\">dealing with creditors informally<\/a>. Find answers to your questions about debt relief options, the consequences of defaulting on a mortgage or car loan, and much more.<\/p>\n\n                    <\/div>\n                <\/div>\n                            <div\n                        class=\"fl-accordion-item\"\n                        id=\"section-3-faq\"\n                        aria-labelledby=\"button-3-faq\"\n                        data-testid=\"fl-accordion-item\"\n                >\n                    <h4\n                            class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                            data-testid=\"fl-faq-question-header-3\"\n                    >\n                        <button\n                                id=\"button-3-faq\"\n                                aria-expanded=\"true\"\n                                aria-controls=\"content-3-faq\"\n                                class=\"fl-accordion-button fl-accordion-button-h4 fl-flex fl-flex-auto fl-justify-between is-opened fl-text-underline\"\n                                type=\"button\"\n                        >\n                            What Are Credit Counseling Organizations?\n                            <span aria-hidden=\"true\">\n                                <i\n                                        class=\"fa fa-angle-down small\"\n                                        aria-hidden=\"true\"\n                                ><\/i>\n                            <\/span>\n                        <\/button>\n                    <\/h4>\n                    <div\n                            class=\"fl-accordion-content active\"\n                            data-testid=\"fl-faq-question-content-3\"\n                            id=\"content-3-faq\"\n                            role=\"region\"\n                            aria-labelledby=\"button-3-faq\"\n                    >\n                        <p>A guide to choosing the right <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/bankruptcy-vs-credit-counseling-what-s-the-right-choice-for-yo.html\">credit counseling organization<\/a>. Learn about the benefits associated with debt negotiation services and firms, how to avoid the risks involved, and what to look for in a credit counselor.<\/p>\n\n                    <\/div>\n                <\/div>\n                            <div\n                        class=\"fl-accordion-item\"\n                        id=\"section-4-faq\"\n                        aria-labelledby=\"button-4-faq\"\n                        data-testid=\"fl-accordion-item\"\n                >\n                    <h4\n                            class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                            data-testid=\"fl-faq-question-header-4\"\n                    >\n                        <button\n                                id=\"button-4-faq\"\n                                aria-expanded=\"true\"\n                                aria-controls=\"content-4-faq\"\n                                class=\"fl-accordion-button fl-accordion-button-h4 fl-flex fl-flex-auto fl-justify-between is-opened fl-text-underline\"\n                                type=\"button\"\n                        >\n                            State Interest Rate Laws\n                            <span aria-hidden=\"true\">\n                                <i\n                                        class=\"fa fa-angle-down small\"\n                                        aria-hidden=\"true\"\n                                ><\/i>\n                            <\/span>\n                        <\/button>\n                    <\/h4>\n                    <div\n                            class=\"fl-accordion-content active\"\n                            data-testid=\"fl-faq-question-content-4\"\n                            id=\"content-4-faq\"\n                            role=\"region\"\n                            aria-labelledby=\"button-4-faq\"\n                    >\n                        <p>This section offers a collection of <a href=\"https:\/\/www.findlaw.com\/state\/consumer-laws\/interest-rates.html\">state law summaries<\/a> dealing with permissible interest rates. Find your state\u2019s interest rate laws to determine the maximum rates, exceptions to the limits, and more.<\/p>\n\n                    <\/div>\n                <\/div>\n                            <div\n                        class=\"fl-accordion-item\"\n                        id=\"section-5-faq\"\n                        aria-labelledby=\"button-5-faq\"\n                        data-testid=\"fl-accordion-item\"\n                >\n                    <h4\n                            class=\"fl-accordion-header fl-flex fl-items-center fl-justify-between fl-no-margin\"\n                            data-testid=\"fl-faq-question-header-5\"\n                    >\n                        <button\n                                id=\"button-5-faq\"\n                                aria-expanded=\"true\"\n                                aria-controls=\"content-5-faq\"\n                                class=\"fl-accordion-button fl-accordion-button-h4 fl-flex fl-flex-auto fl-justify-between is-opened fl-text-underline\"\n                                type=\"button\"\n                        >\n                            Refinancing Do&#8217;s and Don&#8217;ts\n                            <span aria-hidden=\"true\">\n                                <i\n                                        class=\"fa fa-angle-down small\"\n                                        aria-hidden=\"true\"\n                                ><\/i>\n                            <\/span>\n                        <\/button>\n                    <\/h4>\n                    <div\n                            class=\"fl-accordion-content active\"\n                            data-testid=\"fl-faq-question-content-5\"\n                            id=\"content-5-faq\"\n                            role=\"region\"\n                            aria-labelledby=\"button-5-faq\"\n                    >\n                        <p>Sometimes <a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/do-s-and-don-ts-refinancing.html\">refinancing<\/a> is the best way to pay off existing debts. Learn about when refinancing is appropriate, what to look for in a lender, and how to avoid refinancing scams<\/p>\n\n                    <\/div>\n                <\/div>\n                    <\/div>\n    <\/div>\n<\/section>\n\n\n\n<h2>Paying Off Debt 101<\/h2>\n<p>Certain debts are unavoidable, and some are even beneficial to the consumer. Many types of debt are needed to improve your life, provide basic necessities, or even create a larger income. These include:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/education\/higher-education\/student-loans-legal-information-you-should-know.html\" rel=\"noopener noreferrer nofollow\">Student loans<\/a>\u00a0for higher education<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/realestate\/buying-a-home.html\" rel=\"noopener noreferrer nofollow\">Buying a home<\/a>\u00a0to build equity and for housing<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/credit-cards.html\" rel=\"noopener noreferrer nofollow\">Credit card debt<\/a>\u00a0for necessary purchases and emergencies<\/li>\n<li>Car loans for\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/understanding-vehicle-financing.html\" rel=\"noopener noreferrer nofollow\">purchasing a vehicle<\/a><\/li>\n<\/ul>\n<p>Some of these debts may not be difficult to keep current. However, unmanageable consumer debt can quickly take on a life of its own if you struggle to make payments. Carrying a balance on credit cards will generally cost you added interest each month, making it more and more difficult to pay off. Missed and late payments incur additional fees and will likely damage your credit score. As interest and fees pile up, it can overwhelm your finances.<\/p>\n<h2>How To Pay Off Debt<\/h2>\n<p>When you want to control your finances, you must prioritize certain debts above others early in the process. Your first step should be gathering your financial information. This should include your income, outstanding loans, credit cards, medical bills, child support payments, alimony, tax debt, and any other required payments.<\/p>\n<p>It&#8217;s a good idea to\u00a0<a href=\"https:\/\/www.annualcreditreport.com\/index.action\" target=\"_blank\" rel=\"noopener\">get a free copy of your credit report<\/a>\u00a0to examine credit score as you start. This can give you a baseline of your financial situation and is available free of charge once per year.<\/p>\n<p>Your credit report will list every debt you have. Take the time to carefully inspect it for any inaccuracies you can dispute. Your credit score is an indicator of the state of your financial affairs. A healthy credit score should be part of your financial goals.<\/p>\n<p>Review the differences in your debts. Varying interest rates and consequences for default need careful consideration before you start paying. When you can&#8217;t eliminate debt immediately, choosing which debts to tackle can impact how quickly you become debt-free and how many problems arise.<\/p>\n<h2>Tips for Paying Off Your Debts<\/h2>\n<p>You are not the first person to experience financial difficulties, nor will you be the last. We can use successes and failures of those who dealt with debt before to figure out the best path forward.<\/p>\n<h3>Handle Your Necessities Before Repayment<\/h3>\n<p>First, ensure that you can pay for necessities. Falling behind on a mortgage, car loans, or utility payments could result in foreclosure on a home, repossession of a car, or utility cuts.<\/p>\n<p>Payments toward child support and taxes should also be a priority. Failure to pay your legal obligations has serious consequences. Defaulting on paying these obligations can result in:<\/p>\n<ul>\n<li>Wage garnishment<\/li>\n<li>Raised interest rates<\/li>\n<li>Jail time<\/li>\n<li>Loss of driver and professional licenses<\/li>\n<\/ul>\n<p>Missing a single payment won&#8217;t cause these measures to be imposed immediately, but missing multiple payments likely will.<\/p>\n<h3>Decide on a Debt Payment Strategy<\/h3>\n<p>There are many debt payment strategies you can follow. Try to find a method that works for you and that you feel comfortable with. Two popular strategies are the snowball and avalanche methods. Here&#8217;s how they each function:<\/p>\n<ul>\n<li><strong data-redactor-tag=\"strong\">The Snowball Method<\/strong>: The snowball method isn&#8217;t a complicated plan. You start by paying off your smallest debt first. These usually go away quickly, which feels effective and gives you the momentum to keep going. Often, this means paying credit card debt first to avoid the late fees. This will also prevent accrued interest from creating additional financial strain. Make only the minimum payments on other credit cards to keep them current, and avoid using them if possible.<\/li>\n<li><strong data-redactor-tag=\"strong\">The Avalanche Method:<\/strong>\u00a0This repayment plan first focuses on paying off debts with the highest interest rate. You&#8217;ll continue to pay minimum payments on your other debts while you focus on putting more into these higher-interest cards.<\/li>\n<\/ul>\n<p>These are not the only methods available, but the offer good starting points for comparison.<\/p>\n<h3>Consider Debt Consolidation Options<\/h3>\n<p>A debt consolidation loan is another option. Debt consolidation may help you access better interest rates and simplify debt administration. You can start this process yourself or go through a professional company. After securing a personal loan, you will use it to pay each debt in full. Once these are paid off, you no longer have to keep track of multiple lenders, due dates, interest rates, and communications.<\/p>\n<p>This is common practice with student loans. If you are considering consolidating your student loans into one, do your research to see which lender&#8217;s offer is the best for your situation. Government student loan administrators have many options if you struggle to pay. Explore the options available to you with your loan administrator.<\/p>\n<h3>Refinancing Your Debt<\/h3>\n<p><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/do-s-and-don-ts-refinancing.html\" rel=\"noopener noreferrer nofollow\">Refinancing is one way<\/a>\u00a0to manage debt. It can help a homeowner take advantage of lower interest rates or improved credit scores. You could also tap into your home equity to consolidate higher interest rate debt to a more reasonable rate.<\/p>\n<p>Refinancing your auto loan to a lower rate may reduce your monthly payments. A lower interest rate will save you money over the life of your auto loan.<\/p>\n<p>Explore credit cards offering lower interest rates. A balance transfer credit card usually offers low interest rates for a period of time and help you save on interest fees. You can consolidate credit card debts and save money in interest with the right credit offer.<\/p>\n<h2>Options When You Can&#8217;t Pay Down Debt<\/h2>\n<p>Even if you cannot stay ahead of your growing debt, you still have options. There are\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/debt-management-plans.html\" rel=\"noopener noreferrer nofollow\">debt management plans (DMP)<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/options-for-student-loan-repayment.html\" rel=\"noopener noreferrer nofollow\">options for student loan debt<\/a>. These options mainly deal with unsecured debt, such as credit cards. Possible options include:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/bankruptcy-vs--credit-counseling--what-s-the-right-choice-for-yo.html\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Professional credit counseling<\/a>:<strong data-redactor-tag=\"strong\">\u00a0<\/strong>Credit counseling is a good option for anyone struggling to manage their financial situation who wants to learn money management skills. Find a reputable, nonprofit credit counseling agency that offers comprehensive financial education and management services. Research your agency to\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/before-you-file\/avoiding-credit-repair-and-credit-counseling-scams-.html\" rel=\"noopener noreferrer nofollow\">avoid scams<\/a>\u00a0and understand your rights.<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/debt-management-plans.html\" rel=\"noopener noreferrer nofollow\">Debt management plan<\/a>: A debt management agency will negotiate a payment plan over a three-to-five-year period. You pay the agency, which then distributes funds to your creditors. This is like a Chapter 13 repayment plan without going through bankruptcy court.<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/debt-negotiation-programs.html\" rel=\"noopener noreferrer nofollow\">Debt negotiation programs<\/a>: A debt negotiation program will work with your credit card companies to lower the amount of debt you owe. Often, these programs require a lump sum payment for your debts.<\/li>\n<li>Debt settlement: You may work with a debt settlement company to resolve your debts for a lower amount. These companies do charge fees for their services, and you should take care to avoid scams.<\/li>\n<\/ul>\n<p>Other methods may be available as well. Remember that any deal that sounds too good to be true probably is. Beware scammers who prey on those struggling with debt.<\/p>\n<h2>Bankruptcy: The Last Resort<\/h2>\n<p>You may consider filing bankruptcy if getting out from under your debts and making payments simply isn&#8217;t possible.\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy.html\" rel=\"noopener noreferrer nofollow\">Bankruptcy<\/a>\u00a0is a last resort that can offer a fresh start for individuals and couples. You need to complete an\u00a0<a href=\"https:\/\/www.justice.gov\/ust\/list-credit-counseling-agencies-approved-pursuant-11-usc-111\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">approved credit counseling program<\/a>\u00a0before you can file and a\u00a0<a href=\"https:\/\/www.uscourts.gov\/services-forms\/bankruptcy\/credit-counseling-and-debtor-education-courses\" target=\"_blank\" rel=\"noopener\">second debtor education program before you receive your discharge<\/a>.\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/debts-that-remain-after-a-chapter-7-discharge.html\">Bankruptcy will not discharge<\/a>\u00a0your child support, alimony, recent tax debts, or judicial judgments. It also won&#8217;t erase your student loan debts\u00a0<a href=\"https:\/\/studentaid.gov\/manage-loans\/forgiveness-cancellation\/bankruptcy\" target=\"_blank\" rel=\"noopener\">unless there is undue hardship.<\/a><\/p>\n<p>There are two types of bankruptcy available for individuals. Chapter 7 and Chapter 13 bankruptcy are markedly different from one another. Which one is a better fit for you will depend on your unique situation:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7.html\">Chapter 7 bankruptcy<\/a>\u00a0is more difficult to qualify for. Chapter 7 is a liquidation bankruptcy. You must meet a\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/the-bankruptcy-means-test.html\">means test<\/a>\u00a0to be eligible. A bankruptcy trustee sells your\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-7\/exempt-vs-non-exempt-property-under-chapter-7.html\">eligible assets<\/a>, and your creditors receive the funds. The bankruptcy judge terminates your remaining dischargeable debt.<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-13.html\">Chapter 13 reorganization bankruptcy<\/a>\u00a0creates a\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/chapter-13\/chapter-13-repayment-plan-and-confirmation-hearing.html\">repayment plan<\/a>\u00a0that you must follow for three to five years. You make one payment to your bankruptcy trustee, who distributes payments to your creditors.<\/li>\n<\/ul>\n<p>While both types will have a negative effect on your credit score, Chapter 13 often allows for a quicker recovery in your credit rating.<\/p>\n<h2>You Don&#8217;t Have To Do It Alone: A Debt and Bankruptcy Attorney Can Help<\/h2>\n<p>Having debt doesn&#8217;t eliminate your rights. There are still\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/debt-relief\/how-to-stop-debt-collector-harassment.html\" rel=\"noopener noreferrer nofollow\">protections against harassment<\/a>\u00a0from debt collectors, and you need to stay vigilant against\u00a0<a href=\"https:\/\/www.findlaw.com\/bankruptcy\/before-you-file\/avoiding-credit-repair-and-credit-counseling-scams-.html\" rel=\"noopener noreferrer nofollow\">debt scams<\/a>. A\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/bankruptcy-law\/?fli=dcta\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">bankruptcy attorney<\/a>\u00a0is often the best person to step in if you face harassment or lawsuits from creditors or don&#8217;t know where to turn for serious debt help.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                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class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div class=\"was-this-helpful__feedback-container\">\n        <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n            <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n        <\/div>\n        <form class=\"was-this-helpful__feedback-form\">\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--positive\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this helpful?<\/legend>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                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class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\">\n\n    <div class=\"popularDirectory\">\n        <div class=\"general-popular-directory \">\n            <div class=\"general-popular-directory-title\">\n                <h3>Popular Directory Searches<\/h3>\n            <\/div>\n            <ul>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/bankruptcy-law\/\" target=\"_blank\" rel=\"noopener\">Bankruptcy Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/foreclosure-alternatives\/\" target=\"_blank\" rel=\"noopener\">Foreclosure and Alternatives Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/collections\/\" target=\"_blank\" rel=\"noopener\">Collections Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/credit-repair\/\" target=\"_blank\" rel=\"noopener\">Credit Repair Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/debtor-creditor\/\" target=\"_blank\" rel=\"noopener\">Debtor and Creditor Lawyers<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/\" target=\"_blank\" rel=\"noopener\">Real Estate Law Attorneys<\/a><\/li>\n                                    <li><a href=\"https:\/\/lawyers.findlaw.com\/divorce\/\" target=\"_blank\" rel=\"noopener\">Divorce Lawyers<\/a><\/li>\n                            <\/ul>\n        <\/div>\n    <\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Paying off debt can take time and careful thought. FindLaw outlines how to get started, things to consider along the way, and options when you feel you are drowning in debt without a way out.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":286929,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/OverviewPageController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2727],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-286942","page","type-page","status-publish","hentry","category-bankruptcy"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/286942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=286942"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/286942\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/286929"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=286942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=286942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=286942"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=286942"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=286942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}