Holding too much debt can cause financial hardship in several ways. You may struggle to pay your bills, or your credit score could suffer, making it more difficult to qualify for future loans like mortgages or auto loans.
If you’re carrying a significant amount of debt, you can take several steps to reduce it quickly and get on a healthy financial path.
Key Takeaways
- High debt levels can lead to lower credit scores, which can make it more difficult to get financial products or to obtain certain jobs.
- Consider paying down your credit cards with the highest interest rates first or paying off your smallest debt first.
- Look for ways to reduce your expenses and put the money you save toward your debt.
- Student loan forgiveness programs and income-based repayment programs can help with student loans.
- Consult with a professional credit counselor about your options for your situation or find a debt relief company to negotiate with lenders for a reduced amount of debt.
