7 Strategies for Debt Reduction
Debt? Say goodbye!
There’s tons of information out there to help reduce debt, the following are ways to do so quickly and economically, keeping realistic spending and expenses in mind.
1. Create a budget and stick with it! Your budget should include all of your current expenses, big and small from your car payment to your streaming services.
2. Don’t borrow additional money to pay off debts or bills. Robbing Peter to pay Paul won’t get you any more money in the end.
3. Cut unnecessary expenses. Once you’ve written out all of your bills and your budget, start tightening down where you can. Order take out too often? Try eating at home more. Online spending getting you? Make sure you’re only spending on things you need, not everything you see an ad for.
4. Optimize your monthly payment. Pay the maximum amount towards your highest interest rate debts or pay extra on your lowest amount debt to knock it off the list quicker and continue doing so up the list.
5. Ask for help. Some financial institutions can provide assistance if you’re having trouble meeting your obligations. It’s important to speak with your financial institution first to see if accommodations can be made to help you get back on track. Avoid seeking credit counselors that promise to reduce or eliminate your debt at the cost of your credit score, limiting your ability to attain credit in the future for things such as apartments, vehicles, or homes.
6. Set goals and priorities. Determine what’s important. When you prepare to make a purchase, ask yourself if it fits in with your spending priorities right now or if it can wait.
7. Let online tools do the math for you. Check out our partner, Banzai.com, for budgeting tools, savings calculators and more that can help you reach your goals quickly and efficiently.