Tips For Paying Off Debt Faster
Debt can be daunting and you might feel overwhelmed if you have multiple loans that need your attention. Here you’ll find a few tips on paying off your debt faster.
Build Out A Budget
First, we need to find some disposable income that we can put towards the debt. Make a budget of all the things you need like food, housing and other essentials for living. Then use any extra money to put towards your debt.
Pay More Than The Minimum
The faster you pay off your debts the less you’ll spend on interest. This will require you to pay more than the minimum payment.
Use Online/Mobile Banking To Keep Track Of Your Expenses
It’s a good habit to keep up with how much money you’ve spent. You can check your bank statements online or on mobile apps with most financial institutions.
Tackle Your Most Expensive Loan First
If you have more than one loan, it is best to pay off the most expensive one first. Loans with the highest amount on them usually have higher interest rates. Put more towards these while still paying the minimum on your smaller loans.
Consolidate Multiple Debts
If you have multiple loans with high interest rates, you can consider consolidating those loans into one credit card balance that has a lower interest rate. This can help you pay less and it will keep you from having to look out for multiple statements.
Need More Help?
If you’re a member at ALLIANCE Credit Union, we can give you guidance on debt consolidation or answer any questions you might have on reducing your debt. Visit any of our branches to learn more.
