---
title: "How to Survive 10 Financial Horrors"
url: https://www.debt.com/news/how-to-survive-10-financial-horrors/
description: "Learn to face your fears. Read at your own risk."
author: "Joe Pye"
date: 2023-10-03T16:00:47.000Z
updated: 2025-10-27T12:58:21.000Z
source: Debt.com
---

# How to Survive 10 Financial Horrors

What’s scary about Halloween? How much we’re willing to pay for one day of the year. Americans will spend a record $13 billion this Halloween.

All the ghouls, goblins, ghosts and spooky creatures make October the time for fears and frights. But some horrors follow us year-round – like terrifying financial nightmares that will make you sleep with one eye open.

Is there a financial boogeyman haunting you? Here are 10 financial horrors, and how to conquer them...

### 1\. Running from a boulder of student loan debt

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Boulder-Guy.jpg)

**What it means**: You’re graduating from college and face a massive student loan tab you have to pay back.

**No wonder you’re worried**:

44 million student loan borrowers who owe a collective $1.8 trillion

The average student loan debt per borrower = $39,000

**How to survive**:

1.  Consolidate federal student loan debt.
2.  Settle with private lenders.

Learn more at [Student Loan Debt Consolidation](/student-loan-debt/consolidate/).

### 2\. Zombie debt collectors

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Zombie.jpg)

**What it means**: Your debts are like the living dead. They keep coming back no matter what you do.

**No wonder you’re worried**:

Debt collection is CFPB’s No. 1 complaint

77 million Americans have at least one debt in collections

Average amount in collection = $1,400

**How to survive**:

1.  Find the right debt relief option – consolidation, settlement, etc.
2.  Stop collection calls and file suit for harassment.

Learn more at [Fair Debt Collection Practices Act](/collection/fdcpa/).

### 3\. Falling off a corporate high-rise

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Free-falling.jpg)

**What it means**: You’re losing a battle with credit card debt and you feel like your financial life is in jeopardy.

**No wonder you’re worried**:

Average balance on credit cards = $6,569

Average number of credit cards: 4

Average interest rate available: 22 percent

**How to survive**:

1.  Take out a personal debt consolidation loan.
2.  Pay off your debt at a much lower interest rate.

### 4\. Teeth fall out during a loan application

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Toothless-wonder.jpg)

**What it means**: Your credit score isn’t good enough so you’ll be judged and rejected by your creditors.

**No wonder you’re worried**:

Average FICO score = 695 (700 or better is good)

1 in 5 credit reports contain a damaging error

**How to survive**:

1.  Correct your credit report to ensure it is error-free.
2.  Use credit monitoring as you build your credit score.

Learn more at [Get the Credit Score You've Always Wanted](/credit-score/).

### 5\. Armageddon in April

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Skull-mask.jpg)

**What it means**: You’re worried about owing money to the IRS and being unable to pay your income taxes.

**No wonder you’re worried**:

An extension doesn’t stop interest charges

Net tax gap for the IRS = $458 billion - $52 billion in late payments

**How to survive**:

1.  Find a state licensed tax attorney.
2.  Explore options for tax debt relief - OIC, CNC, installment agreement.

Learn more at [Finding the Best Tax Debt Relief Solution](/tax-debt/irs-tax-relief/).

### 6\. Trapped under a paper mountain

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Trapped-under-paper.jpg)

**What it means**: You have too many debts, too many bills and no way to escape – you’re suffocating.

**No wonder you’re worried**:

U.S. consumers owe $16 trillion, in total

399,000 Americans went bankrupt last year alone

**How to survive**:

1.  Call a credit counselor to find solutions.
2.  If no path is open, declare bankruptcy – it’s not the end of the world!

### 7\. Bleeding out from monetary paper cuts

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Mummy.jpg)

**What it means**: You aren’t prepared for medical debt and even small issues are killing your budget.

**No wonder you’re worried**:

Medical debt is the No. 1 reason why Americans go bankrupt

Nearly 43 million Americans have medical debt

**How to survive**:

1.  Review your policies to identify coverage gaps.
2.  Create a budget that allocates savings for emergencies, like a trip to the ER.

### 8\. You call the bank, but no one answers

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Guy-yelling.jpg)

**What it means**: You aren’t good enough to qualify for credit – you aren’t creditworthy, so you’re ignored.

**No wonder you’re worried**:

You’ll need at least a 580 credit score to qualify for an FHA loan with the lowest down payment (3.5 percent)

**How to survive**:

1.  Take strategic action to build your credit score.
2.  Use comprehensive credit restoration before loan applications.

### 9\. Financial Horror No. 9: Partner leaves you for the landlord

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Girl-crying.jpg)

**What it means**: You’re not ready to buy a home, so your significant other will find stability elsewhere.

**No wonder you’re worried**:

The median price for a home in the U.S. is now $428,700

You’ll need at least a 580 credit score or higher to get approved for a 3.5 percent loan

**How to survive**:

1.  Use debt consolidation to reduce debt-to-income (DTI) ratio.
2.  Budget your money to save for a higher down payment.
3.  Build your credit score with credit monitoring.

### 10\. Financial Horror No. 10: Doppelganger takes over your life

![](https://cdn2.debt.com/wp-content/uploads/2022/10/Doppleganger.jpg)

**What it means**: You’re scared your information and data will be stolen and you’ll become a victim of ID theft.

**No wonder you’re worried**:

9 million people fall victim to identity theft every year, the FTC estimates

Financial losses for ID theft total roughly $17 billion

**How to survive**:

1.  Review your credit reports to identify potential fraud.
2.  Use credit monitoring to set up fraud alerts.

Learn more at [How to Prevent Identity Theft](/identity-theft/).