Say 'Goodbye' to Debt

Maybe you were already on the wrong financial footing before Christmas, or perhaps the holiday season put you way over budget. No matter what the reason, debt seems to be alive and well in many American homes. But with a new year, comes a new chance to get back on the right financial track. Starting with getting out of debt.

Move Over, Debt. You’re Not Welcome Here!

Even though more than half of Americans are currently in debt, that doesn’t mean that you have to be! Whether your debt is $1,000 or $20,000, have no fear. You can get out of debt, and you can start today!

For starters, write down a list of everything you currently owe. In addition, write down the interest rate that goes along with the debt. Then, list it in order from highest interest rate to lowest interest rate.

Next, review your budget. Is there room for improvement? Are you spending way more than you should on eating out and movies? It’s time to start spending as little as possible and making sure bills are covered each and every month. Take your budget and create a table that includes a “savings” option and a “debt” option.

Then, start plugging in the numbers. Be sure to pay the minimum on all your debt accounts. Then, on the highest interest debt, pay as much as you possibly can each and every month. Once that is paid, move on to the next debt by taking what you were paying on the paid-off debt and add it to the minimum you are currently paying on the debt. Once that one is paid, move on to the next, and so on and so forth.

Finally, when all your debt is paid, place it into your savings account. This way, the next time something breaks or an emergency occurs, you have the cash to cover it instead of going into more debt. Financial freedom can be yours—you just have to work hard for it!

Are you ready to take the first step in managing your debt? Start 2017 off on the right financial foot by learning more about how to deal with debt by visiting our website for more resources that can help you on the road toward financial freedom.