Paying Off Your Consumer Debt
We’re 7 months in, and you’ve been making steady progress on setting financial goals, slowly growing your savings, and managing your home’s needs.
Now you’re ready to tackle credit card and other consumer debt and to be certain this debt won’t threaten long-term goals or credit score.
Here are a few tips to help manage your credit card debt.
Set up automatic payments on your credit card. Just like you enrolled in ACH for your mortgage, setting up automatic minimum payments on your credit card can ensure that even if you do not pay off the whole debt, at least you are not losing points for missing a payment.
Pay off new charges in full each month so that your debt levels don’t grow.
Get off the hamster wheel and make a plan to eliminate your credit card debt. Identify one debt – either the lowest balance or the highest interest rate – and make payments greater than the minimum amount due. Once you get that debt paid off, apply those payments to the next debt and slowly, but surely crush your debts!
Use one-time funds like a tax refund, gift or a bonus from work to make rapid progress in paying off a debt.
Being debt-free improves your credit score, opens up more opportunities to pursue your dreams and reduces financial stress.
Visit our Referrals and Resources section for additional tips and to receive a free counseling session. Feel free to reach out anytime to discuss your unique situation at 866.550.8099.