5 Surefire Ways You Can Pay Off Debt Faster
Does anyone like carrying debt around? Probably not, but many of us do exactly that. According to Experian’s annual study, the average American has a credit card balance of $6,375, and the average household owes about $16,883. If you have some debts to deal with, you don’t have to let it weigh you down. Reach financial freedom faster by following these 5 clever tips:
Start with a Budget – We love budgets. These handy little charts can help you see what you spend your money on and separate necessities from wants. Whether you make your budget with a spreadsheet, an app, or a simple piece of paper, follow it to help you cut costs in your spending. You may find that you really do need to take a break on grabbing lunch out at work or visiting the café for your daily frap.
Tackle the Most Expensive Debt First – Now that you have a budget, it’s time to refine your debt-paying game plan. Take a look at your credit card interest rates, sorting them from highest to lowest. You’ll want to pay off the one with the highest rates first so you’ll have less money paying off interest in the long run. If possible, increase your payments to get out of the red faster. Don’t forget to pay at least the minimum balance on your remaining accounts as well!
Increase Your Payments – The more money you pay, the faster you’ll obtain financial freedom. It’s as easy as that. Pay more than just the minimum to help you begin digging yourself out of the hole. Try making weekly disbursements or double them up every month to make some headway!
Put the Credit Cards Down – How can you pay off your debt when you keep using credit cards? You can’t. Stop spending with your credit cards as soon as possible and begin using your just debit card or cash. While you’re at it, make sure you aren’t committing any deadly credit card sins to keep your score squeaky-clean.
Use Windfalls Wisely – If you’ve received a bonus for the holidays, netted some cash from a yard sale, or made a little extra money with a side hustle, put it toward paying off your debt. Even a little bit will go a long way in helping you establish your financial freedom!
While conquering debt is an important task to tackle, saving money is also crucial for your financial well-being. Set up a savings account with your friends at Central Federal to get started! Check out what we have to offer here or give us a call at (573) 364-1024.