When it comes to debt relief, you don’t have to pay for help. Here’s how to negotiate with creditors and make a plan to pay.

PROGRESS FOR FORT WORTH MOM

“My goal was to really get my business out there, but then I realized I didn’t have all the right finances,” said Symone Dixon of Fort Worth.

That brought Dixon to the nonprofit Center for Transforming Lives, where she connected with a financial coach. In three months’ time, Dixon said she paid off a small, high-interest loan, negotiated a payment plan for another debt and started saving for her kids’ future.  Dixon said she began with $40. Part of her income directly diverts to savings, making it automatic.

“The consistency of keeping that going changed the mindset,” said Chanel Graham, Dixon’s financial coach. “I can’t save $500 right now. I can only save $5. Five dollars initially gets to, gets to that $500 if you keep doing it consistently.”

“To anybody who is struggling, just really like take it one day at a time,” Dixon said.

DIY DEBT RELIEF

Diana Lozada, economic mobility manager at the Center for Transforming Lives, said consumers should start with a clear picture of their debt.

“The majority is, like, it’s just overwhelming. I don’t really know where to start, right? So, the first thing to start is: make a list,” explained Lozada.

Go through your bills. Make a list of each debt, each balance, interest rate and minimum payment. Lozada said once you understand what you have, you can negotiate with creditors.

“If you’re going through a financial crisis, you lost your job, there’s an emergency, go back to the credit card company. They might be able to lower your interest rate, set up a payment plan with them so you can lower it down,” said Lozada.

Sara Rathner, a credit card expert at NerdWallet, said to ask about options that wouldn’t deepen debt.

“Figure out what it is you want to ask for: a reduced interest payment, some sort of monthly payment plan that’s a number that’s more sustainable for you while you’re experiencing this hardship,” said Rathner.

Referring to your list, understand your highest interest rates. Lozada said consumers with good credit scores can consider if loan consolidation is an option. It involves taking out a loan or opening a new line of credit to simplify the number of payments you’re making. With unsecured debt, like credit cards, Lozada said it may be difficult to find a loan for thousands of dollars at a lower interest rate. The Consumer Financial Protection Bureau explains what to consider here.  

REPAYMENT STRATEGY

Pick a debt repayment strategy. The avalanche method prioritizes paying off the highest interest rate first while still making other minimum payments. A consumer would pay more towards the highest APR with the goal of paying less overall interest.

Another strategy, the snowball method, targets the smallest balance first.

“You pay it and then you can put all of that money into the second one and then the third one,” said Lozada. “Then, you pay the full balance.”

Lozada said a key part of a debt management plan is saving. Even if you’re working to pay off debt, she said an emergency savings fund keeps you from getting further into debt when an unexpected expense pops up. That way, you’re not reaching for a credit card or high-interest loan to cover a car repair or another urgent expense.

HOW TO FIND FREE OR LOW-COST HELP

There are resources available for free or at a low cost to help manage debt.

The National Foundation for Credit Counseling has a contact form on its website to connect consumers to nonprofit counselors. Or, call its agency finder at 800-388-2227.

“That is one resource I would turn to if I was in debt and I felt like I needed help,” said Rathner.

DIY CREDIT REPAIR

If your goal is to repair your credit, start by looking at your credit reports. Head to this website. It guides you to each of the three credit bureaus to review your credit reports for free.

If you see a mistake, ask the credit bureau and the business that reported the inaccurate information to correct it. If you’re unsure of how to word the request, the FTC shares this sample letter.

Include supporting documentation with your dispute.

Rathner said beware of any promises from companies to fix your credit overnight. A company can’t remove negative information from your credit report if it’s accurate and current.

“There are lots of companies out there that advertise on TV that are promising you the moon when it comes to debt repayment. But the best advocate for you is somebody who’s realistic and can let you know:  here are your options, but you still need to make payments on your debts,” Rathner said.

If the information is correct but negative, the FTC explains that a credit bureau can report most negative information for seven years. Bankruptcy information may be reported for ten years.  

Lozada said she tells clients to be gentle with themselves.

“Think solution-based, right? Be open, no judgment. Whatever happened, happened. What are the things that I can do to improve in the future?” said Lozada.

Dixon, a small business owner, said she tracks all income and spending. She consistently looks for ways to save and pay off debt.

“I’m still taking a day at a time, but I feel like I’m more prepared and ready, set, go,” said Dixon. “I know I have people that I can lean on for advice as well.”

The nonprofit Center for Transforming Lives offers financial coaching for clients and wealth workshops for the public.

The National Foundation for Credit Counseling has a contact form on its website to connect consumers to nonprofit counselors.

You can find tips for creating a budget here.

You can also find a free monthly budget planner here.

Need financial help?

Pathfinders
https://www.pathfinderstc.org/
6550 Camp Bowie Boulevard, Suite 111
Fort Worth, TX 76116
Phone: 817-731-1173
info@pathfinderstc.org

Legal Aid of NorthWest Texas
https://legalaidtx.org/
600 East Weatherford Street
Fort Worth, TX 76102
817-336-3943

Money Management International
https://www.moneymanagement.org/

American Consumer Credit Counseling
www.consumercredit.com

2025-2026 REFERRAL DIRECTORY
Legal services and other resources for low-income Texans
https://www.texasbar.com/

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