Step 1: Know exactly how much debt you have<\/p>\n
One of the most common mistakes experts see is not fully understanding the total picture, according to Thomas Nitzsche with Money Management International, one of the nation’s largest nonprofit credit counseling agencies.<\/p>\n
Avoiding bills may feel easier in the moment, but interest compounds, fees add up and accounts can quietly move toward collections, he said. The longer the numbers go unchecked, the harder the problem becomes.<\/p>\n
\u00a0 \u00a0 \u2022 Start by pulling your free credit report.\u00a0
\u00a0 \u00a0 \u2022 Review your statements.\u00a0
\u00a0 \u00a0 \u2022 Write down every balance and interest rate on each account and whether payments are current.<\/p>\n
Step 2: Don’t ignore the interest<\/p>\n
Two people with the same balance can have different outcomes depending on interest rates.<\/p>\n
High\u2011interest debt grows faster and costs more over time. Writing down interest rates next to each balance helps identify which accounts are doing the most damage and which should be addressed first.<\/p>\n
Step 3: Choose the right fix for your situation<\/p>\n
Debt solutions are not one\u2011size\u2011fits\u2011all, Nitzsche said.<\/p>\n
Relief programs, consolidation loans and settlement strategies work differently and are meant for different financial situations.\u00a0<\/p>\n
For some people, a DIY method might be enough to manage credit card debt. Nitzsche said there are two common do\u2011it\u2011yourself approaches<\/a>: the snowball and the avalanche.<\/p>\n Choosing the wrong approach can lead to higher fees, unnecessary credit damage or months of lost progress.<\/p>\n Knowing your full debt picture helps determine which options make sense and which ones don’t.<\/p>\n Step 4: Start before things get worse<\/p>\n Financial counselors say\u00a0one of the biggest mistakes is waiting too long<\/a> to deal with debt.<\/p>\n Delaying action can limit choices and turn a manageable problem into a much harder one. Starting early keeps more options on the table.<\/p>\n That first step doesn’t have to be dramatic. It can be as simple as opening statements, writing things down or asking questions.<\/p>\n Debt checklist<\/p>\n CBS Philadelphia<\/p>\n Where to get help<\/p>\n The\u00a0full In Your Corner podcast episode on debt<\/a> is available now on YouTube.<\/p>\n CBS News Philadelphia is also hosting\u00a0a dedicated day focused on debt help<\/a>. On May 21, certified credit counselors from Money Management International will be available all day to provide free, confidential advice.<\/p>\n If you are looking for solutions, CBS News Philadelphia is In Your Corner with a way out of debt.<\/p>\n Looking for help with a consumer issue? Click here to submit your complaint to In Your Corner<\/a>.<\/p>\n \n More from CBS News\n <\/p>\n![\"Debt](\"https:\/\/www.newsbeep.com\/us-pa\/wp-content\/uploads\/2026\/05\/new-yt-thumbnail-7.png#.webp\")
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