Debt can start small and become difficult before you have time to react. A few unexpected expenses, a slow month at work, or several purchases on credit can leave you with payments that no longer fit your budget.
You are not the only one dealing with this. The Federal Reserve Bank of New York reported that U.S. household debt reached $18.8 trillion in the second quarter of 2026, with credit card balances at $1.26 trillion. Thankfully, for people in Massachusetts and across the country, there are several ways to address heavy debt.
The right option depends on how much you owe, what you can afford, and the type of debt you have. Here’s how to go about it.
Start With a Clear Budget
Before choosing a debt solution, get a clear picture of your finances. Add up your income, essential expenses, debts, interest rates, and minimum payments.
This can show whether the problem can be solved by making some changes to your spending. You may find that canceling unused subscriptions, reducing certain expenses, or putting more income toward high-interest debt is enough to get things moving again.
But if your minimum payments already take up most of your available money, cutting small expenses may not be enough. That is when it makes sense to look at other options.
Ask Creditors About Hardship Options
If you are struggling because of a temporary financial setback, contacting your creditors directly may be worthwhile. Some lenders and credit card companies offer hardship programs that can temporarily reduce payments or change other account terms.
The Consumer Financial Protection Bureau recommends contacting your credit card company as soon as you know you cannot make the required payment. Be honest about what you can afford and ask what options are available. A temporary arrangement may give you time to recover without taking on another financial product.
This option can be particularly useful when your income has dropped for a short period but you expect your situation to improve.
Consider Credit Counseling
Credit counseling can provide another path when you need help organizing your debts. A nonprofit credit counselor can review your budget, help you understand your debts, and potentially set up a debt management plan. Under these plans, you usually make one payment to the counseling organization, which then distributes payments to your creditors. The goal is generally to make the debt easier to repay, sometimes through lower interest rates or adjusted payment terms.
Credit counseling does not erase your debt. Instead, it can make repayment more structured and manageable. For someone who has enough income to repay what they owe but struggles to keep up with several accounts, this may be worth considering.
Explore Debt Relief for Eligible Unsecured Debt
Debt relief may be another option when unsecured debt has become difficult to manage. This can include certain credit card balances, personal loans, medical bills, and retail credit accounts.
Debt settlement programs generally work by negotiating with creditors to settle eligible debts for less than the full amount owed. This approach can potentially reduce the total debt burden, but it also carries risks, including possible damage to credit, collection activity, fees, and tax consequences.
For people researching debt relief Massachusetts, US National Credit Solutions describes a program focused on eligible unsecured debts and negotiated debt reduction. Its published terms also make clear that results vary, not every debt qualifies, and no specific savings or completion time is guaranteed. That is an important distinction. Debt relief should be researched carefully rather than viewed as a quick fix.
Look Into Debt Consolidation
Debt consolidation combines multiple debts into one new loan or account. Instead of making several payments, you make one. The appeal of debt consolidation is easy to understand. If the new loan has a lower interest rate, consolidation could reduce the cost of borrowing and make monthly payments easier to track.
But a lower monthly payment does not always mean you are paying less overall. A longer repayment period can increase the total interest you pay, and some loans may have fees or rates that change later. The CFPB recommends looking at the full cost and loan terms before using consolidation.
Consider Bankruptcy When Debt Is Beyond Repayment
Sometimes debt has reached a point where the other options simply cannot make the numbers work. Filing for bankruptcy may then be worth discussing with a qualified bankruptcy attorney.
Bankruptcy is a legal process with serious and lasting effects, so it should not be treated as another form of debt management. Depending on the type of bankruptcy and the person’s circumstances, it may provide a way to deal with certain debts or protect assets, but the rules are complex.
If your income is too low to keep up with essential expenses and debt payments, getting legal advice can help you understand whether bankruptcy is appropriate.
The Key Takeaway
There is no single debt solution that works for everyone. A person with a temporary income problem may need a hardship arrangement, while someone with several manageable debts may benefit from credit counseling or consolidation. Someone facing a large amount of eligible unsecured debt may consider debt relief, while bankruptcy may be relevant when repayment is no longer realistic.
The important first step is to stop guessing and look closely at the numbers. Once you know what you owe, what you can afford, and which debts are causing the most pressure, it becomes much easier to compare your options and choose a path that fits your financial situation.