The Deal with Debt: Personal Finance Series (Part 5)

by | Nov 21, 2025 | 2025, Family and Consumer Sciences, Money Management

Debt is money you owe to a person or business. While debt often carries a negative connotation, responsible borrowing and repayment can improve your credit history.

Debt & Credit

Debt becomes a problem when you can’t repay what you owe. Missed minimum payments, carrying high credit card balances, or skipping payments can all damage your credit. For more information about credit and credit history, you can read this previous blog.

Budgeting & Mindful Spending

Being thoughtful about spending and borrowing can help you avoid unnecessary debt and improve your financial well-being. Financial well-being means having control over your money and the ability to make choices that reflect your goals and values. It starts with planning, spending less than you earn, and setting aside savings each month, usually with the help of a budget.

Mindful spending is about making intentional choices, aligning your purchases with your personal goals instead of spending out of habit. This awareness can reveal habits that you may want to adjust to save more. Practicing mindful spending not only helps you spot areas to cut back but also reduces financial stress. When you have a plan and track your money, you gain more control, security, and peace of mind. To learn more about budgeting, click here.

Getting Out of Debt

Assorted economy related newspaper headlines with coin jar

© zimmytws / Adobe Stock

The first step to getting out of debt is creating a realistic budget. You might also look for ways to increase your income, such as finding a higher-paying job, taking on a side gig, or selling unused items. If you’re struggling to keep up, reach out to your creditors to discuss a new payment plan.

Debt Collection

A debt collector is an individual or company, like a collection agency or a law firm, that collects debts on behalf of others or for themselves after purchasing past-due accounts. If you’re contacted by a debt collector, speak with them at least once to gather information and confirm whether the debt is truly yours—but avoid sharing sensitive details unless you’re sure of their legitimacy, as scammers often pose as collectors. By law, debt collectors must tell you the exact amount you owe, the creditor’s name, how to obtain details about the original creditor, and what to do if you believe the debt isn’t yours.

Debt collectors have a limited time to sue you for unpaid debts—this “statute of limitations” starts after your first missed payment. Once expired, the debt becomes “time-barred,” and collectors can no longer sue or threaten to sue for payment. However, in some states, making a payment or acknowledging the debt can restart the statute of limitations, so proceed carefully.

If you would like a debt collector to stop contacting you immediately, send a letter by certified mail and ask for a return receipt. If a collector threatens you, hang up and report them to the Federal Trade Commission (FTC).

Debt Elimination Tools & Resources

A reputable credit counseling organization can help by offering expert advice on managing money and debts, developing a budget and a realistic debt repayment plan, and providing free educational materials and workshops. Most reputable counseling organizations are non-profits or universities, such as UF/IFAS Extension, that offer services in person, online, or by phone for little to no fee. Other available resources, such as mobile apps and online tools, include:

An Equal Opportunity Institution.

Suzanne Holloway
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