1. DEBT SOLUTIONS

Why Dealing with Debt Isn’t as Scary as You Think

Why Dealing with Debt Isn’t as Scary as You Think
 Updated 
May 2, 2025
Key Takeaways:
  • Debt is a problem that can be solved.
  • There are many choices for dealing with debt based on the seriousness of your financial challenges.
  • Take action as soon as possible to find the best solution for your unpaid debts—and move on with your life.

It’s no secret that unpaid debt can be stressful, embarrassing, and scary. People are often ashamed to talk about their financial troubles, especially if they’re dealing with unpaid credit card bills or missed mortgage payments. Left unattended for too long, the total amount of debt can reach an unpayable level—leaving people looking for debt relief

If you have unpaid debts, even if you have missed payments on your bills, you don’t have to be afraid. 

Dealing with debt by facing it head-on and taking proactive steps forward can help you get better results for your personal finances. 

Addressing your debt doesn’t have to be so scary. Let’s explore how you could find relief by tackling your debts as soon as possible. 

3 Reasons Dealing with Debt Is Not that Scary

At first, debt may seem frightening to even think about. It doesn’t feel good to get notices in the mail from your credit card company or watch the balances grow each month as bills go unpaid. Some people might be tempted to ignore the problem. 

When you take the time to really think about it, you may realize that dealing with debt isn’t so bad. Here are a few reasons.

1. Dealing with debt is nothing to be ashamed of

Debt is as American as apple pie. Americans have lots of debt. It’s likely that many of your friends, family, and neighbors are dealing with debt, just like you. Americans carry debt from mortgages, auto loans, credit cards, student loans, and more. 

Back in the 19th century, when there were debtors’ prisons, being in debt was seen as a morally bad thing that people should be ashamed of. Not anymore. Most Americans today understand that debt isn't good or bad 

Debt is just a financial tool. And debt powers the economy. 

Getting into trouble with debt isn’t bad, either. People often find themselves in financial difficulty for reasons beyond their control. Unpaid debts can result from job loss, divorce, loss of a breadwinner, medical bills, or many other unfortunate circumstances that could happen to anyone.

Instead of feeling ashamed about your debt, put that energy into taking positive steps forward. Stop beating yourself up, and start beating your debt. 

2. Anyone can tackle debt

You don’t have to earn a lot of money or even be good at math to set up a plan for dealing with debt. The most important ingredients are commitment and hard work. A solid strategy for dealing with debt might involve earning a little more, spending a little less, or getting professional help. Begin by setting up a budget to figure out where your money really goes each month, and then take it from there.

3. It’s easier to get started than you think

No matter how much debt you have or where you are in life, you can work toward becoming debt-free by just taking it one step at a time. Here’s a quick step-by-step guide for dealing with debt: 

  • Look at the big picture. How much unpaid debt do you have, and how much is it costing you per month? 

  • Follow an example. Do you know anyone, or have you read about someone in the news or on social media who has paid off debt successfully? What did they do? Can you follow their example? 

  • Find the low-hanging fruit. What’s the smallest debt that you could pay off fastest? Sometimes it helps to build momentum by paying off that smallest debt first. 

  • Identify your biggest roadblocks. What’s holding you back from paying off debt? Do you feel overwhelmed, not sure where to start? 

  • Lay out a phased plan. Use a debt payoff calculator or other tools to understand how long it would take to pay off the debt. 

  • Set expectations. What big changes are you prepared to make to pay off debt? Are you willing to cook all your meals at home for a month? Give up vacations for a year? Sell your car and get a cheaper one? Take in a roommate to save money on rent? Think carefully about what you’re willing to give up today in your lifestyle in exchange for a more prosperous, peaceful financial future. 

  • Get going. Now it’s time to take action and start dealing with debt. 

In the next section, we’ll share a list of tools and resources for dealing with debt. See which ones might be good choices to help you find debt relief. 

Tools For Dealing with Debt

There’s no one right answer for dealing with debt. Different people might have success with any or all of these choices listed below. As you start your journey of dealing with debt, learn about these common debt relief solutions. Learn how they work, why people sometimes fail to get results, and what you need to know to start. 

DIY debt strategies

Just like fixing up your home, dealing with debt is about repairing the foundation of your everyday financial life. If you consider yourself a DIY-er, you may want to try one of these solutions. 

DIY debt relief doesn’t require a new credit card,  new loan, or professional help. You just have to find extra cash and put that money toward your debts.

Here are the two most common DIY strategies for dealing with debt: 

  • Debt snowball. With the debt snowball method, you pay off your smallest debts first, while making minimum payments on all the others. This gets you to your first debt payoff the fastest. When the first debt is paid off, put its payment toward the second debt (in addition to that minimum payment you were already making). In this way, your payment amount grows bigger, like a snowball rolling downhill. 

  • Debt avalanche. This strategy works like the snowball, but you focus on the debt that has the highest APR. This could save you money in the long run. But if your most expensive debt is big, it could take a long time before you get your first win.  

Debt consolidation loans for dealing with debt

A debt consolidation loan lets you roll multiple debts into one. This way, you won’t have to keep track of multiple payments and worry about whether you’ve made all of them on time. Debt consolidation loans are best when you can qualify for an interest rate that’s lower than what you currently pay.  

This type of debt solution is often a good choice if you’re dealing with expensive credit card debt and you can qualify for a personal loan or other type of loan. 

Balance transfer cards for dealing with debt

A balance transfer card is another way to consolidate your credit card debt into a single credit card with a promotional interest rate as low as 0%. The way it works is, you transfer an existing credit card balance to the new card for a fee (generally 3% to 5% of the amount you’re transferring). 

Balance transfers work great if you can pay off the balance by the time the introductory rate ends (typically 6 to 21 months). Paying off credit card debt at zero interest for a year (or longer) could give you a powerful tool in your plan for dealing with debt. 

But there are some possible downsides to a balance transfer credit card. First, you need good credit to qualify. If you’re already falling behind on your credit card bills or have delinquent accounts on your credit report, you might not be approved.

Also, a common pitfall is to charge up new balances on the paid-off cards after transferring the balances. Doing this could leave you in even more debt than you started with. 

Balance transfers are a bit of a juggling act. If you have a plan that lets you save some money while you knock out your debt in a relatively short time, and you’re not at risk of running up new debt, it could work. 

Credit counseling

When you work with a credit counseling agency, they might recommend a debt management plan (DMP) for you. A credit counselor will set up a structured repayment plan for you. They may also be able to negotiate with your creditors to lower your interest rates. 

The idea is to fully repay your unsecured debts in three to six years. You’ll send monthly payments to the agency so they can distribute your funds to your creditors until you’ve paid off all your debt.

You’ll probably have to stop using credit cards while you’re in the plan. 

A DMP and credit counseling could be a good choice for some people. But the payment amount tends to be high. If you can’t make your financial life fit the rules of the DMP, your creditors could back out of the plan.  

Debt relief

Debt relief or debt settlement is negotiating with your creditors to accept less than the full amount you owe, and forgive the rest. You can negotiate debts yourself or work with a professional debt relief company like Freedom Debt Relief. Professional might get you better results than you could get for yourself. They have negotiating experience and relationships with most creditors.  

Turn to FDR to Deal With Debt Relief

If you’re dealing with debt and it’s making you stressed, scared, or affecting your ability to pay for the things you need, a debt relief program may be a good option for you. To learn more, talk to a Freedom Debt Relief Certified Debt Consultant. They’ll help you find out if you qualify or provide information on other options you can use to resolve debt and build a stronger financial future. Contact us today.

Debt relief by the numbers

We looked at a sample of data from Freedom Debt Relief of people seeking credit card debt relief during November 2024. This data reveals the diversity of individuals seeking help and provides insights into some of their key characteristics.

Credit Card Usage by Age Group

No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.

Here's a snapshot of credit behaviors for November 2024 by age groups among debt relief seekers:

Age groupNumber of open credit cardsAverage (total) BalanceAverage monthly payment
18-253$9,011$282
26-355$12,647$390
35-506$16,172$431
51-658$16,725$529
Over 658$17,047$499
All7$15,142$424

Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future

Home-secured debt – average debt by selected states

According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) (using 2022 data) the average home-secured debt for those with a balance was $212,498. The percentage of families with mortgage debt was 42%.

In November 2024, 25% of the debt relief seekers had a mortgage. The average mortgage debt was $236504, and the average monthly payment was $1882.

Here is a quick look at the top five states by average mortgage balance.

State% with a mortgage balanceAverage mortgage balanceAverage monthly payment
California20$391,113$2,710
District of Columbia17$339,911$2,330
Utah31$316,936$2,094
Nevada25$306,258$2,082
Massachusetts28$297,524$2,290

The statistics are based on all debt relief seekers with a mortgage loan balance over $0.

Housing is an important part of a household's expenses. Remember to consider all your debts when looking for a way to get debt relief.

Support for a Brighter Future

No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.

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Frequently Asked Questions

How to negotiate debt settlement myself?

DIY debt settlement is possible. First, decide how much you want to offer your unsecured creditors to settle your debt, and then make a plan to come up with the money. 

Your creditor wants to get paid, so it may take several conversations to reach an agreement. Once you do, get it in writing. 

Check out our detailed tips on how to negotiate your own debts.

How long does debt settlement take?

It depends. You may be able to settle all accounts within weeks if you have access to money you can offer your creditors. For instance, a 401(k) account you can borrow against or savings account that you can tap. 

Otherwise, debt settlement timing depends on how long it takes you to save an amount to offer your creditors. You can speed this up by cutting spending, selling unused items, and taking on a side gig for more income.

Most debt settlement programs take 24 to 48 months from beginning to end.

How does Freedom Debt Relief work?

Freedom Debt Relief is the largest debt negotiator in the U.S. 

We offer our debt relief program to Americans with $7,500 or more in unsecured debtincluding credit card debt, personal loan debt, and medical debt who are experiencing a legitimate financial hardship.

The Freedom Debt Relief program is designed to resolve your debt for significantly less than you owe as quickly as possible. 

First, we provide a debt evaluation to help you decide if our program is right for you. If you decide that it is, we work with you to design a program that fits your monthly budget (it could be less than your monthly minimum payments). Once you enroll, our expert negotiators create a negotiation strategy designed to get you the results you want. Our company has used this method to resolve over $9 billion in debt since 2002. That's much more than any other debt relief company in the industry.