As we mentioned in our last post, no one enjoys owing other people or organizations money. It creates anxiety. You need to make a dent in your credit card or loandebt, but you can barely make the minimum payment let alone actually start doing some damage to your balance. But instead of complaining, it’s time to implement a smarter way to pay down your debt. Here are five ways to begin reducing your debt as soon as possible!
Paying attention to details is vital in being able to reducing your debt.
Take ownership- if your name is on the credit card or the loan, then it’s your responsibility. The company you borrowed from has most likely warned you about borrowing too much, but in the end you have to take sole ownership of your debt. Last time we checked, complaining doesn’t shrink debt. Roll up your sleeves, because it’s time to get to work!
Create a budget- perhaps the most common financial advice ever, but it works. Yes, it may be boring, but when you actually see where your money is going, it becomes a lot easier to identify areas where you could save.
Think of credit cards as loans- swiping your credit card is not the same as swiping your debit card or paying in cash. You are borrowing money that must be repaid and only gets more expensive if you don’t!
Watch the small fees- accumulating small costs can make a huge impact on your debt. A couple of fees here, a nice meal or two out there and you could be looking at hundreds to thousands of dollars a year. Use your budget to identify these costs, and then put them toward repaying your loan.
Remind yourself- “behind” is not where you want to be when it comes to repaying debt. Getting your balance down to zero takes time and discipline, so set alarms or reminders on your phone, put sticky notes on your mirror or whatever it takes to remind you to make payments.
When it comes to credit card or loan debt, treading water only brings you closer to sinking. You may need to make some sacrifices, but grinding now to pay down your debt will make a huge difference in your financial future. If you need help, Northeast Security Bank can provide guidance and alternatives to help you keep your head above water. Tags: credit cards, debt, debt reduction, loans