Latest news with #AchieveCenterforConsumerInsights
Yahoo
13-05-2025
- Business
- Yahoo
Consumer confidence falters as financial expectations fall flat, Achieve survey finds
Economic optimism fades as households continue to struggle under mounting debt and tight budgets. SAN MATEO, Calif., May 13, 2025 /PRNewswire/ -- A new survey by digital personal finance company Achieve reveals a gap between consumers' financial expectations and their economic reality. While 57% of respondents believed their finances were poised for improvement over the past year, only 32% of American households actually realized those expected gains. This reversal of fortunes underscores the fragility of household budgets as broad cost pressures from inflation, high interest rates and now, tariffs, push more consumers into relying on debt to make ends meet. Achieve's April 2025 survey found 33% of consumers said their financial situation deteriorated over the past year — a stark contrast from the 10% who predicted a decline in Achieve's inaugural survey in spring 2024. "Households enter 2025 more pessimistic and with fewer financial gains in hand than most were expecting," said Achieve Co‑Founder and Co‑CEO Brad Stroh. "The optimism gap is a warning sign that highlights the need for tools and strategies that address the financial strain facing households. The reality of high debt loads, high interest costs and persistent inflation cast a sustained shadow on the financial optimism for many Americans." Economic optimism erodesWorsened/Will get worse Stayed the same/Will stay the same Improved/Will improve How do you think your financial situation will change from April 2024 to April 2025? (2Q24 Survey) 10 % 33 % 57 % How did your financial situation change from April 2024 to April 2025? (2Q25 Survey) 33 % 35 % 32 % Source: Achieve Center for Consumer Insights The survey, conducted by Achieve's think tank, the Achieve Center for Consumer Insights, complements the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit by providing qualitative insights into consumer borrowing and debt. The latest edition of Achieve's study highlights some of the risks that persistent reliance on debt poses for many consumers: 25% of respondents accrued more debt over the past three months, nearly level from Achieve's first quarter 2025 study. Meanwhile, 40% said their total debt remained flat and 35% decreased their debt (approximately level from last quarter). 58% of those surveyed use credit card debt to cover essential expenses. Two out of every five of these respondents have had this debt for more than six months. 37% say it's difficult to pay their debts on time, up slightly from 36% last quarter. 59% report paying all of their bills on time, down from 65% during 1Q25 and 61% in 2Q24, the inaugural edition of Achieve's study. Missed Payment Risk Rises Consumers are increasingly at risk of being late or missing debt and monthly bill payments, Achieve's survey found. Consumers reported a higher risk of missing a payment in the next three months on nearly all of the monthly obligations covered in the survey. In 2Q25, missed payment risk on student loans increased to 35% (up from 32% last quarter), while even secured debts like auto loans (14%) and mortgages (10%) are at greater risk of a late or missed payment, the survey found. Consumers who expect to miss or be late on a loan or bill payment in the next three months Debt Type 2Q24 3Q24 4Q24 1Q25 2Q25 Student loan 29 % 28 % 38 % 32 % 35 % Personal loan 18 % 15 % 18 % 20 % 17 % Auto loan 10 % 12 % 11 % 7 % 14 % Utilities 11 % 12 % 12 % 11 % 13 % Cable/internet 9 % 10 % 11 % 10 % 13 % Credit card 11 % 13 % 12 % 13 % 13 % Buy now, pay later 13 % 19 % 13 % 17 % 13 % Mortgage/rent 8 % 9 % 9 % 7 % 10 % Mobile phone 7 % 9 % 10 % 8 % 10 % Car insurance 7 % 7 % 7 % 7 % 9 % Homeowners/renters insurance 8 % 8 % 7 % 5 % 8 % Q: What will you do to stay current with your bills over the next three months? Sample ranges from 1,460-2,000 and varies by quarter and number of respondents within each category of bill payment. Source: Achieve Center for Consumer Insights "When people are squeezed by debt levels and ongoing bills, their stress level rises," Stroh said. "Our data shows that even small income disruptions or timing mismatches can lead to late payments and these challenges are magnified by higher borrowing costs that make it more costly to carry debt balances." Drivers of Rising Debt Among respondents whose debt increased over the past three months, one in three (33%) pointed to difficulty making ends meet without borrowing, 28% cited employment and income challenges and 21% acknowledged falling victim to general overspending. Healthcare costs and other medical issues remain a key challenge, with 16% of respondents attributing their debt to these expenses. The leading causes of rising debt2Q24 2Q25 Difficulty making ends meet without additional debt 36 % 33 % Job loss or reduced income 27 % 28 % General overspending or living beyond your means 16 % 21 % Major health change 10 % 16 % Car accident, breakdown or major repair 12 % 12 % Expenses related to raising children 12 % 12 % Major home repair 11 % 12 % Major appliance replacement or repair 11 % 11 % Victim of a crime 4 % 9 % Change in housing situation 8 % 9 % Emergency pet expense 8 % 8 % Legal issues 3 % 8 % Became the primary caregiver of an adult 4 % 6 % Helped family or friend with large sum of money 5 % 6 % Death of a family member 3 % 6 % Divorce, separation or relationship break-up 2 % 4 % Gambling debt 2 % 3 % Going through bankruptcy, credit counseling or debt relief 3 % 2 % Natural disaster 4 % 1 % Other 18 % 10 % Q: Why has your debt increased over the past three months? Select all that apply. n=490 (2Q25) and 396 (2Q24) Source: Achieve Center for Consumer Insights Methodology The data and findings presented are based on an Achieve survey conducted in January 2025 consisting of 2,000 U.S. consumers ages 18 and older with an active account for one or more of the following categories of consumer debt: auto loan; major credit card with a minimum outstanding balance of $100; first-lien mortgage; home equity line of credit (HELOC); student loan; and other (unsecured personal loan, store-branded credit card, buy now, pay later loan, or closed-end home equity loan). The sample was augmented to include a statistically significant subset of credit card, auto loan and student loan borrowers who have been 30 days or more past due at least once in the past six months. About the Achieve Center for Consumer Insights The Achieve Center for Consumer Insights is a think tank that leverages Achieve's team of digital personal finance experts to provide a view into the state of consumer finances. In addition to sharing insights gleaned from Achieve's proprietary data and analytics, the Achieve Center for Consumer Insights publishes in-depth research, bespoke data and thoughtful commentary in support of Achieve's mission of helping everyday people get on the path to a better financial future. About Achieve Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loans, debt resolution and debt consolidation, along with financial tips and education and free mobile apps: Achieve MoLO® (Money Left Over) and Achieve GOOD™ (Get Out Of Debt). Achieve has 2,300 dedicated teammates across the country, with hubs in Arizona, California, Florida and Texas. Achieve is frequently recognized as a Best Place to Work. Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Equal Housing Opportunity (NMLS ID #138464); Achieve Home Loans, Equal Housing Opportunity (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Achieve Resolution (NMLS ID # 1248929); and Freedom Financial Asset Management (CRD #170229). Personal loans are originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, Equal Housing Lender. View original content: SOURCE Achieve
Yahoo
13-05-2025
- Business
- Yahoo
Consumer confidence falters as financial expectations fall flat, Achieve survey finds
Economic optimism fades as households continue to struggle under mounting debt and tight budgets. SAN MATEO, Calif., May 13, 2025 /PRNewswire/ -- A new survey by digital personal finance company Achieve reveals a gap between consumers' financial expectations and their economic reality. While 57% of respondents believed their finances were poised for improvement over the past year, only 32% of American households actually realized those expected gains. This reversal of fortunes underscores the fragility of household budgets as broad cost pressures from inflation, high interest rates and now, tariffs, push more consumers into relying on debt to make ends meet. Achieve's April 2025 survey found 33% of consumers said their financial situation deteriorated over the past year — a stark contrast from the 10% who predicted a decline in Achieve's inaugural survey in spring 2024. "Households enter 2025 more pessimistic and with fewer financial gains in hand than most were expecting," said Achieve Co‑Founder and Co‑CEO Brad Stroh. "The optimism gap is a warning sign that highlights the need for tools and strategies that address the financial strain facing households. The reality of high debt loads, high interest costs and persistent inflation cast a sustained shadow on the financial optimism for many Americans." Economic optimism erodesWorsened/Will get worse Stayed the same/Will stay the same Improved/Will improve How do you think your financial situation will change from April 2024 to April 2025? (2Q24 Survey) 10 % 33 % 57 % How did your financial situation change from April 2024 to April 2025? (2Q25 Survey) 33 % 35 % 32 % Source: Achieve Center for Consumer Insights The survey, conducted by Achieve's think tank, the Achieve Center for Consumer Insights, complements the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit by providing qualitative insights into consumer borrowing and debt. The latest edition of Achieve's study highlights some of the risks that persistent reliance on debt poses for many consumers: 25% of respondents accrued more debt over the past three months, nearly level from Achieve's first quarter 2025 study. Meanwhile, 40% said their total debt remained flat and 35% decreased their debt (approximately level from last quarter). 58% of those surveyed use credit card debt to cover essential expenses. Two out of every five of these respondents have had this debt for more than six months. 37% say it's difficult to pay their debts on time, up slightly from 36% last quarter. 59% report paying all of their bills on time, down from 65% during 1Q25 and 61% in 2Q24, the inaugural edition of Achieve's study. Missed Payment Risk Rises Consumers are increasingly at risk of being late or missing debt and monthly bill payments, Achieve's survey found. Consumers reported a higher risk of missing a payment in the next three months on nearly all of the monthly obligations covered in the survey. In 2Q25, missed payment risk on student loans increased to 35% (up from 32% last quarter), while even secured debts like auto loans (14%) and mortgages (10%) are at greater risk of a late or missed payment, the survey found. Consumers who expect to miss or be late on a loan or bill payment in the next three months Debt Type 2Q24 3Q24 4Q24 1Q25 2Q25 Student loan 29 % 28 % 38 % 32 % 35 % Personal loan 18 % 15 % 18 % 20 % 17 % Auto loan 10 % 12 % 11 % 7 % 14 % Utilities 11 % 12 % 12 % 11 % 13 % Cable/internet 9 % 10 % 11 % 10 % 13 % Credit card 11 % 13 % 12 % 13 % 13 % Buy now, pay later 13 % 19 % 13 % 17 % 13 % Mortgage/rent 8 % 9 % 9 % 7 % 10 % Mobile phone 7 % 9 % 10 % 8 % 10 % Car insurance 7 % 7 % 7 % 7 % 9 % Homeowners/renters insurance 8 % 8 % 7 % 5 % 8 % Q: What will you do to stay current with your bills over the next three months? Sample ranges from 1,460-2,000 and varies by quarter and number of respondents within each category of bill payment. Source: Achieve Center for Consumer Insights "When people are squeezed by debt levels and ongoing bills, their stress level rises," Stroh said. "Our data shows that even small income disruptions or timing mismatches can lead to late payments and these challenges are magnified by higher borrowing costs that make it more costly to carry debt balances." Drivers of Rising Debt Among respondents whose debt increased over the past three months, one in three (33%) pointed to difficulty making ends meet without borrowing, 28% cited employment and income challenges and 21% acknowledged falling victim to general overspending. Healthcare costs and other medical issues remain a key challenge, with 16% of respondents attributing their debt to these expenses. The leading causes of rising debt2Q24 2Q25 Difficulty making ends meet without additional debt 36 % 33 % Job loss or reduced income 27 % 28 % General overspending or living beyond your means 16 % 21 % Major health change 10 % 16 % Car accident, breakdown or major repair 12 % 12 % Expenses related to raising children 12 % 12 % Major home repair 11 % 12 % Major appliance replacement or repair 11 % 11 % Victim of a crime 4 % 9 % Change in housing situation 8 % 9 % Emergency pet expense 8 % 8 % Legal issues 3 % 8 % Became the primary caregiver of an adult 4 % 6 % Helped family or friend with large sum of money 5 % 6 % Death of a family member 3 % 6 % Divorce, separation or relationship break-up 2 % 4 % Gambling debt 2 % 3 % Going through bankruptcy, credit counseling or debt relief 3 % 2 % Natural disaster 4 % 1 % Other 18 % 10 % Q: Why has your debt increased over the past three months? Select all that apply. n=490 (2Q25) and 396 (2Q24) Source: Achieve Center for Consumer Insights Methodology The data and findings presented are based on an Achieve survey conducted in January 2025 consisting of 2,000 U.S. consumers ages 18 and older with an active account for one or more of the following categories of consumer debt: auto loan; major credit card with a minimum outstanding balance of $100; first-lien mortgage; home equity line of credit (HELOC); student loan; and other (unsecured personal loan, store-branded credit card, buy now, pay later loan, or closed-end home equity loan). The sample was augmented to include a statistically significant subset of credit card, auto loan and student loan borrowers who have been 30 days or more past due at least once in the past six months. About the Achieve Center for Consumer Insights The Achieve Center for Consumer Insights is a think tank that leverages Achieve's team of digital personal finance experts to provide a view into the state of consumer finances. In addition to sharing insights gleaned from Achieve's proprietary data and analytics, the Achieve Center for Consumer Insights publishes in-depth research, bespoke data and thoughtful commentary in support of Achieve's mission of helping everyday people get on the path to a better financial future. About Achieve Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loans, debt resolution and debt consolidation, along with financial tips and education and free mobile apps: Achieve MoLO® (Money Left Over) and Achieve GOOD™ (Get Out Of Debt). Achieve has 2,300 dedicated teammates across the country, with hubs in Arizona, California, Florida and Texas. Achieve is frequently recognized as a Best Place to Work. Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Equal Housing Opportunity (NMLS ID #138464); Achieve Home Loans, Equal Housing Opportunity (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Achieve Resolution (NMLS ID # 1248929); and Freedom Financial Asset Management (CRD #170229). Personal loans are originated by Cross River Bank, a New Jersey State Chartered Commercial Bank, Equal Housing Lender. ContactsAustin KilgoreDirectorCorporate Communicationsakilgore@ TarkazikisManagerCorporate Communicationsetarkazikis@ View original content to download multimedia: SOURCE Achieve Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-04-2025
- Business
- Yahoo
5 Ways You Might Not Realize You're Wasting Money
It's easy to overlook the small expenses that quietly chip away at consumer budgets. While they may not seem significant on their own, habits like choosing brand-name items, feel-good spending and buying at the wrong time can add up quickly. Warren Buffett: Trending Now: Here are five ways you might not realize you're wasting your money. One of the most common culprits is paying extra for brand-name products when generic versions offer the same quality at a fraction of the price. 'It's easy to get into the habit of buying a brand name you see frequently, and that you've bought for years,' said Austin Kilgore, analyst with the Achieve Center for Consumer Insights. 'However, store-brand items at the grocery store can easily cost 40% less than their brand-name counterparts.' Kilgore went on to explain: 'For example, a couple that spends $200 a month on name-brand groceries could save $80 every month.' Discover More: Many people focus on health insurance premiums, yet overlook the complete cost of care. 'Find discounts on medications,' Kilgore said. 'If you need a common drug, a discount store may offer it for just a few dollars a month. Some people can save by ordering medications by mail or in volume. Your physician may have suggestions.' Kilgore continued, noting that some manufacturers offer coupons online for particularly expensive drugs. 'In some cases, the coupon can cut the cost of a prescription by a few hundred dollars,' he said. Purchasing items out of season or before major sales can result in paying more for the same product. 'When you shop can impact how much you spend on certain items,' said Andrea Woroch, a consumer and money-saving expert. 'For instance, always shop at the end of the season for which a clothing item was designed to get up to 75% off the retail price.' She went on to explain that winter apparel is a better purchase when retailers clear out inventory as spring and summer approach. Woroch also said it's wise to wait until popular sales events such as Amazon Prime Day in mid-July or Black Friday to buy electronics. 'You can even score big savings on household appliances during long holiday weekends like Memorial Day,' she pointed out. 'May is Maytag month, during which you save hundreds off select Maytag appliances from a variety of retailers that sell their models.' Eco-conscious spending has become increasingly popular, but it's easy to overpay for items that offer minimal environmental benefits. 'One money sink I see all the time is the 'ethical upgrade' mindset,' said Chris Burdick, co-founder and chief product officer at FairKiwi. 'People feel good swapping everyday items for sustainable versions like bamboo utensils, reusable cotton rounds, and high-end organic snacks, but often end up buying more than they actually need.' Burdick explained, 'Ironically, this eco-conscious consumption can turn into its own form of waste. I've seen people toss perfectly good items just to replace them with 'greener' alternatives, not realizing that keeping what they already own is often more sustainable and budget-friendly.' In addition, spending money to feel good could mask habitual spending. 'The intention is ethical, but the execution can quietly drain your wallet and damage the planet,' Burdick noted. Paying for a gym membership might feel like an investment in one's health, but if the membership goes unused, it's money that could be better used elsewhere. 'During the pandemic, many people discovered they could exercise outdoors or in their homes with online or DVD workout programs,' Kilgore said. 'Since then, many have rejoined or joined new places to work out. If you stop and think about whether some of your pandemic-era routines worked, you might be able to save up to hundreds of dollars every month.' More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying How Far $750K Plus Social Security Goes in Retirement in Every US Region 4 Things You Should Do if You Want To Retire Early 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 5 Ways You Might Not Realize You're Wasting Money Sign in to access your portfolio
Yahoo
05-04-2025
- Business
- Yahoo
This college grad, 21, won't propose to his girlfriend with $70K of debt. The Ramsey Show gave blunt advice
Dave from Springfield, Illinois is only 21 years old, fresh out of college, debt-free, in a stable relationship and hustling through internships. He's even considering proposing to his girlfriend to start a new family. There's just one pressing concern: his girlfriend's enormous pile of debt. He estimates that her total outstanding balance is roughly $70,000. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Here are 3 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? 'Everytime I try to bring it up, she's dismissive about it,' said the recent grad on an episode of The Ramsey Show. 'I don't really want to pay off her debt.' Co-host John Delony's response was as blunt as possible: 'You should just break up with her, dude.' Here's why the show's mental health expert made a snap judgement that the relationship is doomed already. Dave's hesitation to marry someone with debt isn't unusual. A 2024 survey by the Achieve Center for Consumer Insights found that 64% of U.S. adults wouldn't want to date someone with a lot of debt. Even an outstanding balance of $10,000 or less would be enough for 29% of people to consider ending their relationship. Put simply, debt is a deal-breaker for many adults. For Dave, his girlfriend's attitude towards the enormous balance also represents how different their outlook on life and money is. 'She's a little unmotivated like she isn't really that ambitious,' he said, explaining that she hasn't really looked for much work out of college while he's been busy doing internships and building a career. "I worked so hard to be debt-free and she just kind of took the short-cut and I don't know, it just feels weird for me.' A lack of shared money values once you're in a relationship isn't so common. Roughly 84% of American couples said they were financially compatible with their partner, according to a 2024 Ipsos poll, while 87% said they were comfortable talking to their partner about personal finances. Delony suggests that Dave's lack of shared money goals with his girlfriend foreshadows more disagreements in the future. 'Down the road, you're going to run into, 'Oh, I want to raise kids like this but this is how my dad did it' or 'I don't want to live in this neighborhood or this house,'' he said. 'If that's your first impulse is 'what about me?' then you're not ready to get married yet.' Co-host Rachel Cruze agrees, calling his girlfriend's perspective on debt a 'red flag.' However, she encourages Dave to have a conversation to see if they can try to get on the same page before breaking up. If you and your partner are struggling to find common ground, there are ways to resolve these types of differences. Read more: Trump warns his tariffs will spark a 'disturbance' in America — use this 1 dead-simple move to help shockproof your retirement plans ASAP Money can be a tricky subject, but the majority of American adults (79%) think it's best to talk about personal finances with their partner early in their relationship, according to the Ipsos poll. At the same time, the Achieve study found that 29% of adults said couples should discuss their debt honestly within the first six months of dating. With this in mind, having an open and honest conversation about your personal finances and debt can set the stage for a healthy relationship. You could also consider raising the subject periodically and creating a household budget together so that you and your partner can match expectations and create clear boundaries for individual finances. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Cost-of-living in America is still out of control — and prices could keep climbing. Use these 3 'real assets' to protect your wealth today, no matter what Trump does This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
CBS News
13-02-2025
- Business
- CBS News
Secured vs. unsecured debt: Everything to know now
Debt is crushing American households in 2025. A recent Achieve Center for Consumer Insights survey found that 28% of consumers saw their debt increase last fall, with many struggling to cover basics including food and housing. Between inflation, resumed student loan payments and unexpected medical bills, more people are turning to credit cards just to make ends meet. With interest rates at record highs, debt can quickly spiral out of control. Even a few missed payments can lead to severe consequences. Before borrowing money, it helps to understand how secured and unsecured debt differs. Each type comes with unique risks that could impact your finances for years. . Secured vs. unsecured debt: Everything to know now The key difference between secured and unsecured debt boils down to the level of risk. Adrienne Hines, a bankruptcy attorney, explains that secured debt gives lenders "security" through valuable assets such as your home or car. In contrast, unsecured debt relies on your promise to repay. Without collateral as protection, lenders may charge higher interest rates and require excellent credit scores to offset their risk. Understanding secured debt and its risks Secured debt is backed by collateral or a hard asset and comes in these forms: Mortgages Car loans Home equity loans and home equity lines of credit (HELOCs) Secured credit cards (which require you to put a cash deposit) Missing payments on any of these debts can have swift and serious consequences. Debt and bankruptcy attorney Ashley Morgan of Ashley F. Morgan Law warns that car lenders can repossess your vehicle after one missed payment — though most wait until you're 90 days behind. With mortgages, falling behind can trigger foreclosure proceedings, putting your home at risk. The financial damage doesn't stop at losing your property. "If your home is foreclosed on and sold or your car is repossessed, you can be financially liable for the difference in the value and the sale price," says Gwyneth Borden, debt and public policy expert and founder of Remynt. This means you could still owe thousands even after losing your asset. Speak to a debt relief expert about your options now. The ins and outs of unsecured debt Unsecured debt doesn't require collateral. Here are the most common examples: Credit cards Medical bills Student loans Personal loans While unsecured lenders don't have immediate recourse to take your property if you default, these debts come with other risks. "The predatory nature of unsecured lenders has become very sophisticated at targeting desperate people," Hines warns. "They're trapping them in a cycle of daily compounding interest [that can last for decades]." Missing payments can damage your credit score, making recovery even harder. Black marks on your credit can hinder you from renting a new home, getting approved for credit cards or qualifying for reasonable interest rates on future loans. Strategies for tackling debt head-on Getting out of debt starts with understanding where your money goes. "Budgeting, as basic as it sounds, is usually the starting place to get your finances under control," explains Morgan. By tracking your spending and credit card balances each month, you can spot places to cut back and free up money for debt payments. Beyond budgeting, financial experts recommend these proven debt assistance strategies: Consider getting a debt consolidation loan: If you have good credit, Borden suggests consolidating high-interest debts into a single loan with a lower rate. Just be careful not to rack up new credit card debt after consolidating. Talk to your creditors: Some lenders offer hardship programs that can lower your interest rates or restructure payments. This can save you money without involving debt relief companies. Consult a bankruptcy attorney:"Most people don't realize their retirement plans and the equity in their homes are often protected (in whole or in part) if they file for bankruptcy," explains Hines. A free consultation can help you understand your options. Use the snowball method: Paying off your smallest debts first can keep you motivated. As you pay off debt, roll that payment into tackling your next smallest balance. Try the avalanche method: Target debts with the highest interest rates first while making minimum payments on others. Using this strategy, you save money in interest charges in the long run. The bottom line "To fix [secured or unsecured] debt, you [must] be honest about how much [of it] you [have] and be open to exploring all available ways to manage it," emphasizes Hines. A single conversation with a financial advisor, credit counselor or bankruptcy attorney can open doors to solutions you might not know exist. Not sure where to start? Experts recommend beginning with a simple budget to stop adding new debt. Then, weigh if debt relief is a good idea for your situation — and which strategy fits best. The snowball method offers quick wins, the avalanche approach saves on interest and bankruptcy might provide a fresh start.
