Money moves

10 Money Moves to Make When Debt Is Piling Up

Feeling buried is common. Here's a clear order of operations to get back in control.

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Debt gets heavier when you avoid looking at it. The fastest relief usually comes from getting every balance in one place, calling the people you owe, and stopping new interest from stacking up. Here's the order that works for most people.

  1. 1. Write down every debt in one list

    Balance, interest rate, minimum payment and due date for each one. Seeing the whole picture is what makes the next steps possible.

  2. 2. Call your creditors before you miss a payment

    Many lenders have hardship programs that lower rates or pause payments. They are far more flexible before an account goes late.

  3. 3. Get free help from a nonprofit credit counselor

    Agencies accredited by the NFCC can review your budget and may set up a debt management plan with lower interest rates.

  4. 4. Stop the interest from growing

    If your credit is still fair or better, a balance transfer card or a lower-rate card can cut what you pay in interest while you pay down the balance.

  5. 5. If your credit is thin, look at other ways to qualify

    Some cards look at assets instead of your credit history. It can help you cover essentials without a high-interest payday loan.

  6. 6. Deal with tax debt early

    The IRS offers payment plans, and penalties grow the longer a balance sits. Getting expert help early can keep a tax bill from getting worse.

  7. 7. Cover a small gap without an overdraft

    A single overdraft fee can cost more than the purchase that caused it. A small advance can bridge a few days until payday.

  8. 8. Compare loan offers before you sign anything

    If you need to borrow, compare rates and terms from several lenders, and only borrow what you can repay on time.

  9. 9. Add a small second income stream

    Even an extra $100 a month changes the math on the smallest balance. Survey and reward apps are an easy place to start.

  10. 10. Watch out for debt scams

    Never pay upfront fees to anyone promising to erase your debt, and be wary of anyone who tells you to stop talking to your creditors. The FTC's site lists warning signs.

Pick the one step you've been avoiding and do it today. Momentum matters more than a perfect plan.

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