Getting Out of Debt For Dummies

Get out and stay out of debt the smart and easy way

This is a clear and simple guide to getting out from under credit card debt, student loan debt, and all other forms of owing people money. With simple changes and smart decisions, you can start today and enjoy financial stability moving forward. This book covers everything you need to know to take the sting out of those monthly repayments, offering strategies for coping with personal loans, car loans, mortgages, home equity loans, and beyond. Getting Out of Debt For Dummies will help you prioritize and consolidate debt, so you can pay off the most pressing bills first and reduce the number of debtors coming after you. You'll also get pro tips for using credit cards responsibly, building up your credit score, and avoiding debt-generating traps when you make purchases. Getting out of debt doesn't have to be overwhelming. Let this Dummies guide help you quickly and easily repair your finances.

• Understand the different types of debt, including good and bad debt
• Develop a strategy for managing student loans and getting on a repayment plan
• Know what you're signing up for when you use credit cards and pay-later platforms
• Negotiate with collection agencies, the IRS, and angry creditors
• Design a realistic and painless payback schedule—even for serious debt

For the millions who have substantial debt and want to turn their financial situation around, Getting Out of Debt For Dummies offers hope and a straightforward way forward.

Introduction 1

Part 1: Getting Started with Getting Out of Debt 5

Chapter 1: Eliminating Debt: The Basics 7

Chapter 2: Facing Financial Facts 33

Chapter 3: Breaking Down the Parts of a Budget 45

Chapter 4: Creating a New Budget 61

Chapter 5: Spending Less and Saving More 85

Part 2: Making Sense of Credit Reporting and Scoring 101

Chapter 6: Discovering How Credit Reporting Works 103

Chapter 7: Understanding Credit Reports and Scores 123

Chapter 8: Monitoring Your Credit Reports and Scores 155

Part 3: Taking Action on High Debt and Bad Credit 169

Chapter 9: Getting the Best Help for Bad Credit for Free 171

Chapter 10: Coping with Debt Collection 185

Chapter 11: Reducing Credit Damage in a Crisis 215

Part 4: Successfully Managing Your Debt and Credit for Life 243

Chapter 12: Starting or Restarting Your Credit in Real Life 245

Chapter 13: Putting Yourself in Control of Your Credit 263

Part 5: The Part of Tens 273

Chapter 14: Ten Debt Don’ts 275

Chapter 15: Ten Ways to Deal with a Mortgage Meltdown 281

Chapter 16: Ten Strategies for Dealing with Student Loans 293

Index 305

Steven Bucci has been helping people master personal finance issues for 20 years. He authors a popular weekly personal finance column for the financial mega-site Bankrate. Steve is also a personal credit coach, speaker, and expert witness. Steve was formerly president of the Money Management International Financial Education Foundation.

The easy way to become debt free

Sometimes debt seems insurmountable, but it’s not! Getting Out of Debt For Dummies shows you how to reverse the cycle and cope with any kind of debt. You’ll learn how to pay off credit cards, personal loans, student loans, and even mortgages as quickly and painlessly as possible. The advice in this book will help you consolidate your debt and create a realistic budget. If your debt situation looks out of hand, you aren’t alone. Millions are going through the same thing, and this book has the info you need to get back on track.

Inside…

• Prioritizing multiple bills
• Using credit cards wisely
• Avoiding pay-later scams
• Identifying good and bad debt
• Organizing your finances
• Negotiating with creditors
• Paying off overdue taxes