You’re not alone in your debt, although it can certainly feel that way sometimes. If you’re thinking of putting an end to the cycle — but aren’t sure where to start, who to trust or what free resources are available to you — then this is the perfect place to kick off your journey to financial freedom.
1. Free Counseling and Budgeting Help
You don’t need to pay a financial coach to get expert advice. In fact, there are nonprofit groups that can help you get a handle on your spending.
Talk to a HUD-Certified Housing Counselor
If you’re behind on rent or struggling with a mortgage, you can talk to a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). These counselors can help you understand your housing rights, develop a repayment plan to help you catch up and connect you to programs for renters and homeowners in your community.
Nonprofit Credit Counseling
There are tons of solid, low- or no-cost credit counseling options available through reputable non-profit organizations across the country. A credit counselor can review your credit report with you, help you make a plan to improve your score and even assist with budgeting. Look for a local-to-you option through the National Foundation for Credit Counseling to discover all your options.
2. Legal Support
Getting a letter in the mail from an attorney is scary, especially when it’s about your debt. And while hiring an attorney may feel beyond your abilities and budget, there are legal services that may be able to help.
Legal Aid Programs
While their services and availability are different from state to state, legal aid programs can be a lifeline for people of more modest means. A legal aid program may be able to assist with wage garnishment, debt lawsuits, evictions and foreclosures and government benefits, like social security or disability. These services may have income limits, so be sure to check before reaching out.
Consumer Law Clinics at Universities
Law schools often run clinics where supervised students offer legal help for free. These clinics may be able to assist with disputes with lenders, credit reporting errors and even identity theft issues. Check with nearby, accredited universities to see what options are available in your region.
3. Community-Specific Programs
Don’t assume that you’re out of luck until you check all your options. These handy tools can help you figure out what help might be available to you:
Public Benefit Screeners
These online tools ask simple questions about your household, income, and needs. Based on your answers, they tell you which programs you may qualify for, such as SNAP (food stamps) or Medicaid.
Local Government Support Programs
Cities and counties sometimes offer their own help, such as rent assistance, food pantries or transportation services. These are often not advertised widely, but your local Department of Human Services website is a good place to look. A quick way to evaluate the services in your area is by dialing 211. Operated by the non-profit United Way, this is a free, national resource that can connect you with housing, nutrition, mental health and job support.
Community Action Agencies
These agencies help low-income families with a wide range of needs, from help paying heating bills, to HeadStart preschool programs to home weatherization.
When to Upgrade
Free support is a great place to start, but your debt problems may call for more hands-on help. If you’re dealing with large, high-interest balances, feel overwhelmed or can’t keep up with minimum payments, you’d benefit from a conversation with a Certified Debt Specialist.