Debt Management
Few things bring more financial joy to our lives than paying off debt. — DMBA Financial Planning Team
The debt cycle
An emergency or purchase that never gets paid off can trigger a debt cycle. When you continue spending on credit, a pattern evolves. You make monthly payments but the increasing balance makes it impossible to pay off the full debt.
A three-step plan for getting out of debt
- Stop spending (on credit)
- Build a plan
- Make your payments
Understanding three major debt strategies
Trying to juggle numerous debts with high finance charges can feel overwhelming. When dealing with elevated high-interest debt, it’s critical to understand your options.
Credit counseling, debt consolidation, and debt settlement (a.k.a. debt relief or debt forgiveness), can appear similar but are not the same. Do not sign anything before fully understanding what these programs entail.
Credit counseling
Nonprofit credit counseling services help you build a budget and create a debt management plan.
How it works »
Debt consolidation
Debt consolidation combines multiple accounts into one lower-interest loan with one monthly payment.
When it helps »
Debt settlement
Debt settlement can lead to ruined credit, high fees, and years of debt repayment without any guarantee of success. It is risky and expensive and should generally be avoided.
Risks and trade‑offs »