💳 Debt Management & Consolidation

Explainer

Debt management involves strategies to pay off or restructure debt.

Options:

• Debt consolidation loans
• Balance transfer credit cards
• Debt management plans (via nonprofit agencies)
• Debt settlement (last resort)

Comparison: Consolidation Loan vs. Balance Transfer

• Consolidation Loan: Fixed payments, longer term
• Balance Transfer: 0% APR for short period, requires strong credit

Guide: How to Tackle Debt

List all debts & interest rates

Choose snowball (smallest balance first) or avalanche (highest interest first) method

Explore consolidation options if overwhelmed

Trends in 2025

• Growth of AI-powered debt payoff apps
• More banks offering “debt relief products”
• Rising use of peer-to-peer lending platforms