HOW TO HELP LOVED ONES DEAL WITH DEBT

Juan Pinon, an electrical engineer in McAllen, Texas, struggled with credit card debt for years. It wasn't until he confided in his sister that he began to turn things around.

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"It just so happened that one day I opened up to my sister, and she confessed to me that she had debt issues and was able to get out through professional help," Pinon says.

Getting a vetted referral to a nonprofit credit counseling agency and encouragement from someone he trusted convinced him to take action. Pinon enrolled in the agency's debt management program and paid off about $50,000 in less than three years.

It's difficult to watch people we care about struggle with debt. Debt can disrupt their financial and personal lives, as well as the lives of those around them. As a close friend or family member, your influence can be powerful enough to spark change. How can you help others avoid falling further into debt, especially as the expensive holiday season inches closer? Here's what you can do to help a loved one deal with debt.

PROCEED WITH CAUTION

Unlike Pinon, people with debt won't always raise the issue themselves. Bringing up someone else's personal financial matters can feel like overstepping a boundary. If you think it's important to intervene, be strategic about setting the right tone.

The first step should be asking if they're open to the conversation, says Kathryn Ellywicz, a marketing and communications specialist and former counselor at GreenPath, a nonprofit credit counseling agency. Giving them a choice may prevent them from feeling ambushed.