Chargeoffs

First, contact your lender to ask about hardship programs or payment deferral options. If that fails, consider selling the car privately (if you can cover the loan balance) or trading it in for a far less expensive vehicle.

Yes. The principle is even more critical. With limited resources, every dollar must have a purpose. Conscious spending ensures your scarce money is directed toward what will have the greatest positive impact on your life and stability, rather than leaking out on unnoticed expenses.

When spending rises to meet or exceed income increases, it eliminates the financial buffer needed for emergencies. This means any unexpected expense, like a car repair or medical bill, must be funded with debt, as there are no spare funds available.

Non-profit agencies focus on education and counseling, often offering DMPs with reduced interest rates and waived fees. For-profit settlement companies aim to negotiate lump-sum settlements for less than you owe, which can severely damage your credit and involve high fees.