Debt is a drag — in more ways than one. Monthly payments can challenge your budget and make it difficult to save. And high interest rates and lengthy repayment terms can make it impossible to wipe out debt quickly. Do these types of challenges have you worried about your financial well-being? Here are tips to help you pay down debt and free up money to save — so you can regain confidence in your financial future.
Swap high-interest debt for lower-cost loans. Consider replacing high-interest debt with low-interest loans to help reduce costly finance charges. Then use any extra dollars you save or proceeds you receive to pay down existing debt — not to make new purchases.
Renegotiate with lenders. You may be surprised to discover how flexible some creditors can be. Loan terms can be renegotiated and credit card rates lowered. Sometimes all you need to do is ask. If you’re unable to get the creditor to budge, take your business elsewhere if you can.
Create a spending budget. Everyone knows how important it is to have a budget to track expenses, but far too many simply don’t have one. Without realizing how much you’re spending each month, "small" expenses add up quickly. Creating a written budget for your household can help you gain control (and visibility) of spending and identify areas where you can save.
Saving. Nearly everyone can save more on a regular basis than they presently do. Applying the tips above can help free up money so you can save more. Automatic contributions to employer-sponsored savings plans is one of the easiest ways to save. Any amount you save/invest is automatically removed from your paycheck making it seamless and simple to manage. Similarly, set up automatic transfers on a weekly or monthly basis to your savings account.
With creativity and discipline, you can succeed at reducing your expenses so you have more money to pay down debt and build your savings. Regain control of your financial future.
Swap high-interest debt for lower-cost loans. Consider replacing high-interest debt with low-interest loans to help reduce costly finance charges. Then use any extra dollars you save or proceeds you receive to pay down existing debt — not to make new purchases.
Renegotiate with lenders. You may be surprised to discover how flexible some creditors can be. Loan terms can be renegotiated and credit card rates lowered. Sometimes all you need to do is ask. If you’re unable to get the creditor to budge, take your business elsewhere if you can.
Create a spending budget. Everyone knows how important it is to have a budget to track expenses, but far too many simply don’t have one. Without realizing how much you’re spending each month, "small" expenses add up quickly. Creating a written budget for your household can help you gain control (and visibility) of spending and identify areas where you can save.
Saving. Nearly everyone can save more on a regular basis than they presently do. Applying the tips above can help free up money so you can save more. Automatic contributions to employer-sponsored savings plans is one of the easiest ways to save. Any amount you save/invest is automatically removed from your paycheck making it seamless and simple to manage. Similarly, set up automatic transfers on a weekly or monthly basis to your savings account.
With creativity and discipline, you can succeed at reducing your expenses so you have more money to pay down debt and build your savings. Regain control of your financial future.