Prioritizing Your Debt | Rhode Island Housing Loans
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Prioritizing Your Debt

Tough times often call for making tough decisions. But making those tough decisions now will keep those tough times from lingering on and will protect your credit.

  1. Prioritize your spending based on need.
    You must have shelter, food and utilities. However, a second car payment or boat payment could be downsized or eliminated.
  2. Look for expenses that can be reduced or eliminated.
    Expenses to consider reducing or eliminating include cable or satellite TV, internet, cell phones, dining out, and entertainment.
  3. Consider using other financial resources like stocks, savings accounts, or personal property that may have value. If the first two steps do not provide enough income, consider your other resources. Take any responsible action that will save cash.
  4. Contact a non-profit consumer credit counseling agency that specializes in providing help in restructuring credit payments. Credit counselors can often reduce your monthly bills by negotiating reduced payments or long-term payment plans with your creditors. Most credit-counseling agencies are reputable and provide their services free of charge. Beware of credit-counseling agencies that offer counseling for a large up-front fee or donation.

For consumer debt advice contact the National Foundation for Credit Counseling.

For credit counselors in Rhode Island call 211 or contact an independent, HUD-approved counseling agency, like the Rhode Island Housing HelpCenter, at 401-457-1130.