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Debt Assistance: DIY or Get Help?

Debt Assistance: DIY or Get Help?
Betsalel Cohen
UpdatedNov 23, 2022
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    2 min read

Looking At Your Finances - Self Help or Professional Debt Assistance

The first question you need to ask yourself is "Do I really know my financial situation?" Before you can tackle your debt problems you need to know how much money you are making, how you are spending it, and how much savings and equity you have available.

If you already have a budget and can easily create a balance sheet, then you have taken a big first step to understanding your financial situation. If not, then take advantage of the many budget apps that help streamline the process of maintain a budget. Take advantage of Bills.com Budget Guide to learn about the importance of a Budget and practical tips on how to keep a budget.

However, if you find it hard to make sense of your financial situation, or need a push to making the first step, then you should consider getting assistance to deal with your debt through a credit counseling agency.

Finding the Right Debt Relief Programs

Finding the most appropriate debt relief program will very much depend on a number of factors including the amount and type of your debt, your income, expenses, assets, and your credit.

For some, finding the debt assistance can come in the form of taking a loan by shopping around for a cash-out mortgage or a personal loan. In those instances, you would need good to excellent credit, a strong income, and a positive cash flow.

However, anyone struggling with debt will know that the situation is very stressful. Late payments can lead to debt collection letters, debt collector calls, lawsuits, and possibly even wage garnishments, bank levies, and liens. Handling a financial hardship is stressful. Very few of us are experts in the field of debt negotiation. Fortunately, there are professional firms that can help with a debt management program, debt settlement, or bankruptcy.

Get Debt Assistance through Bills.com Debt Navigator

Use Bills.com Easy and Free Debt Navigator Tool. It will assist you in finding a debt relief solution that best fits your personal financial situation.

Debt Assistance – Don't Wait

If you are having trouble paying back your debt, then reach out for professional debt assistance.

One good place to start is with your current lender or creditor. For example, anyone having trouble with a Federal Student loan should contact their servicer, and read the government web site about repaying their loans.

If you are having trouble with your mortgage, then reach out to your mortgage servicer and find out the best foreclosure alternative program, whether it is a refinance, modification, short sale, or any other plan they can offer.

If you are struggling with medical debt, credit card debt and other unsecured personal, then you can get debt assistance through a free consultation. Make sure that you get debt assistance through a reputable credit counseling company, debt settlement firm, or bankruptcy lawyer.

Dealing with debt

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q2 2022 was $16.15 trillion. Auto loan debt was $1.50 trillion and credit card was $0.89 trillion.

According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1.739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

The amount of debt and debt in collections vary by state. For example, in Alaska, 17% have any kind of debt in collections and the median debt in collections is $1868. Medical debt is common and 4% have that in collections. The median medical debt in collections is $456.

While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.

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