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No. of Recommendations: 7

You wrote, I seem to recall a section of this Board that included some basic or standard ways to approach getting out of debt. A friend of mine is in need of help and I thought I'd find the name of a non-scam credit counseling service here but cannot find what I seek.

Any suggestions?

Sure. You're probably looking for the board's FAQ. Look over there to the right of this message ->

There are some hyperlinks you can click on.

If you don't see the links, you're probably viewing the "Whole Thread". Get out of that view and just view a single message. Once you're on a single message you'll find links on the right-hand border of the message.

If you still can't find the FAQ, click this link:

Section 7 onward is probably the most applicable.

With that said, debt reduction is mostly about living below your means and using effective strategies to pay off those debts. To that end, you might want to also explore the Living Below Your Means board. Your friend must first get a handle on their expenses and stop the bleeding. If they can't do that, there's little point to more advanced strategies to pay off debt more quickly.

If they have their spending under control your friend should look at a technique called snowballing. There's a link to an Excel calculator as well that shows you the effect of the strategy. Basically it's just about paying off the highest interest rate debt first, then working your way down the ladder.

Once they have the snowballing idea down, they can look at analyzing whether or not it makes sense to refinance or use a low-rate balance transfer to cut down on the cost of their borrowing. Sixteen years ago I actually wrote a post on this board explaining why over the long-run not paying high interest rates can be so important.

- Joel
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