Year: 2024

5 Ways the Fair Debt Collection Practices Act Protects You

If you feel helpless because debt collectors are calling for payment, you have more power than you realize. You just need to be aware of your rights and how to use them. The Fair Debt Collection Practices Act is a…

How to Get Out of Debt: 7 Tips That Work

Getting out of debt is something you can do yourself with the right tools and motivation. Take it from those who’ve been there. The people profiled in NerdWallet’s How I Ditched Debt series tackled thousands of dollars of debt using…

4 Steps to Deal With Debt Collection

If you’re facing calls from debt collectors, make sure you understand how debt collection happens, the best way to resolve your account and what this means for your credit — before you pay anything. What is a debt collector? A…

How to Use Debt Avalanche

Knowing how to pay off your debt isn’t always easy, but there are some simple strategies that can help. Two common methods are the debt snowball and the debt avalanche. The debt avalanche targets debts with the highest interest rates…

Taking a 401(k) Loan? Here’s What to Know

Many 401(k) plans allow users to borrow against their retirement savings. It’s a relatively low-interest loan option that can help cover a large expense, but tread lightly. Getting a 401(k) loan can mean long-term retirement losses or penalties if you’re…

How to File Chapter 13 Bankruptcy

Chapter 13 bankruptcy lets you restructure overwhelming debts under the protection of a federal court, setting up a repayment period of three to five years. This is also called “wage earners” bankruptcy, because you must have a regular income to…

Chapter 7 Bankruptcy: What It Is and How to File

Chapter 7 bankruptcy can wipe out many forms of overwhelming debt under the protection of a federal court. You may have to give up some assets, like an expensive car or jewelry, but the vast majority of filers do not….

Tax Debt: 3 Steps to Resolve Your Debt With the IRS

You can avoid many things in life — dishes in the sink, getting an oil change, yard work — but one thing that’s unavoidable is tax debt. As of May 2022, 30.5 million individual 2021 returns were filed with taxes…

How I Ditched Debt: Becoming a Budget Obsessive

In this series, NerdWallet interviews people who have triumphed over debt using a combination of commitment, budgeting and smart financial choices. Responses have been edited for length and clarity. One night in February 2016, Christine Brown and her husband, Corbin,…

When Your Parents Die Broke: Can You Inherit Debt?

Can you inherit debt from your parents? Usually, the answer is no, but you may still have to deal with pushy debt collectors and you’ll probably want to consult an attorney to handle the financial mess your parents leave behind….