Good Debt or Bad Debt?

  • Section 1 thumbnail Debt Consolidation Options

    Are you behind on your bills? If so, you might be thinking about debt consolidation. This option may work for some people to help pay off debt. Debt consolidation loans are typically used for unsecured debts, for example personal loans, credit cards and student loans. Instead of dealing with multiple bills, you have the ability to manage one consolidated bill.

  • Section 2 thumbnail Paying Off Credit Cards

    When your monthly statement comes, there’s a natural tendency to pay only the minimum amount due. Read your statement carefully for information about how long it would take to pay off your account balance if you only pay the minimum payment. This could be years, or even decades if it is a high balances. Learn how to approach paying off your credit cards.

  • Section 3 thumbnail Credit Counseling and Debt Relief Services

    Do you find yourself in overwhelming debt? Speaking with a credit counselor or debt relief service provider may be a good place to start.  Debt relief services can include an agency or professional financial advisor who assist in educating consumers on how to manage overwhelming debt. There are various ways to find credit counseling and debt relief services. But, you can start with asking a representative at your financial institution for a referral.

  • Section 4 thumbnail Dealing with Debt Collectors

    There are a few important guidelines to follow when dealing with debt collectors. One of these is to review the debt information to determine if the debt is yours and dispute any debt that you believe is not yours. But, most importantly learn about your consumer rights. 

  • Section 5 thumbnail Debt Settlement and Debt Elimination Scams

    Some companies offering debt settlement programs may not deliver on their promises, like their “guarantees” to settle all your credit card debts for 30 to 60 percent of the amount you owe. Other companies may try to collect their fees from you before they settle any of your debts. Learn more about debt settlement and your consumer rights.

Good debt, bad debt

Debt Collection & Your Rights

Throughout your life, debt may be necessary and not a bad thing if you spend within your means. Debt is a form of borrowing and it is important to remember that every debt must be repaid. The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair or deceptive practices to collect past due debts from you. Visit the Consumer Financial Protection Bureau (CFPB) for more information regarding FDCPA.

Good debt, bad debt