When it comes to debt relief, you don\u2019t have to pay for help. Here\u2019s how to negotiate with creditors and make a plan to pay.<\/p>\n
PROGRESS FOR FORT WORTH MOM<\/p>\n
\u201cMy goal was to really get my business out there, but then I realized I didn’t have all the right finances,\u201d said Symone Dixon of Fort Worth.<\/p>\n
That brought Dixon to the nonprofit Center for Transforming Lives<\/a>, where she connected with a financial coach. In three months\u2019 time, Dixon said she paid off a small, high-interest loan, negotiated a payment plan for another debt and started saving for her kids\u2019 future. \u00a0Dixon said she began with $40. Part of her income directly diverts to savings, making it automatic.<\/p>\n \u201cThe consistency of keeping that going changed the mindset,\u201d said Chanel Graham, Dixon\u2019s financial coach. \u201cI 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.\u201d<\/p>\n \u201cTo anybody who is struggling, just really like take it one day at a time,\u201d Dixon said.<\/p>\n DIY DEBT RELIEF<\/p>\n Diana Lozada, economic mobility manager at the Center for Transforming Lives, said consumers should start with a clear picture of their debt.<\/p>\n \u201cThe 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,\u201d explained Lozada.<\/p>\n 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.<\/p>\n \u201cIf 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,\u201d said Lozada.<\/p>\n Sara Rathner, a credit card expert at NerdWallet, said to ask about options that wouldn\u2019t deepen debt.<\/p>\n \u201cFigure 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,\u201d said Rathner.<\/p>\n 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\u2019re 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<\/a>. \u00a0<\/p>\n REPAYMENT STRATEGY<\/p>\n 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.<\/p>\n Another strategy, the snowball method, targets the smallest balance first.<\/p>\n \u201cYou pay it and then you can put all of that money into the second one and then the third one,\u201d said Lozada. \u201cThen, you pay the full balance.\u201d<\/p>\n Lozada said a key part of a debt management plan is saving. Even if you\u2019re 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\u2019re not reaching for a credit card or high-interest loan to cover a car repair or another urgent expense.<\/p>\n HOW TO FIND FREE OR LOW-COST HELP<\/p>\n There are resources available for free or at a low cost to help manage debt.<\/p>\n The National Foundation for Credit Counseling has a contact form<\/a> on its website to connect consumers to nonprofit counselors. Or, call its agency finder at 800-388-2227.<\/p>\n \u201cThat is one resource I would turn to if I was in debt and I felt like I needed help,\u201d said Rathner.<\/p>\n DIY CREDIT REPAIR<\/p>\n If your goal is to repair your credit, start by looking at your credit reports. Head to this website<\/a>. It guides you to each of the three credit bureaus to review your credit reports for free. <\/p>\n If you see a mistake, ask the credit bureau and the business that reported the inaccurate information to correct it. If you\u2019re unsure of how to word the request, the FTC shares this sample letter<\/a>. <\/p>\n Include supporting documentation with your dispute.<\/p>\n Rathner said beware of any promises from companies to fix your credit overnight. A company can\u2019t remove negative information from your credit report if it\u2019s accurate and current.<\/p>\n \u201cThere 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: \u00a0here are your options, but you still need to make payments on your debts,\u201d Rathner said.<\/p>\n If the information is correct but negative, the FTC explains <\/a>that a credit bureau can report most negative information for seven years. Bankruptcy information may be reported for ten years.\u00a0\u00a0<\/p>\n Lozada said she tells clients to be gentle with themselves.<\/p>\n \u201cThink solution-based, right? Be open, no judgment. Whatever happened, happened. What are the things that I can do to improve in the future?\u201d said Lozada.<\/p>\n Dixon, a small business owner, said she tracks all income and spending. She consistently looks for ways to save and pay off debt.<\/p>\n \u201cI’m still taking a day at a time, but I feel like I’m more prepared and ready, set, go,\u201d said Dixon. \u201cI know I have people that I can lean on for advice as well.\u201d<\/p>\n The nonprofit Center for Transforming Lives offers financial coaching for clients and wealth workshops<\/a> for the public. <\/p>\n The National Foundation for Credit Counseling has a contact form <\/a>on its website to connect consumers to nonprofit counselors. <\/p>\n You can find tips for creating a budget here<\/a>. <\/p>\n You can also find a free monthly budget planner here<\/a>. <\/p>\n Need financial help? <\/p>\n Pathfinders Legal Aid of NorthWest Texas Money Management International American Consumer Credit Counseling 2025-2026 REFERRAL DIRECTORY NBC 5 Responds is committed to researching your concerns and recovering your money. Our goal is to get you answers and, if possible, solutions and a resolution. Call us at 844-5RESPND (844-573-7763) or\u00a0fill out our customer complaint form<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"When it comes to debt relief, you don\u2019t have to pay for help. 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https:\/\/www.pathfinderstc.org\/<\/a>
6550 Camp Bowie Boulevard, Suite 111
Fort Worth, TX 76116
Phone: 817-731-1173
info@pathfinderstc.org<\/a><\/p>\n
https:\/\/legalaidtx.org\/<\/a>
600 East Weatherford Street
Fort Worth, TX 76102
817-336-3943<\/p>\n
https:\/\/www.moneymanagement.org\/<\/a><\/p>\n
www.consumercredit.com<\/a><\/p>\n
Legal services and other resources for low-income Texans
https:\/\/www.texasbar.com\/<\/a><\/p>\n