Consumer debt can be one of the biggest challenges to financial wellness. With some intentional action and commitment, reaching true financial wellness is possible!
Here’s how to pay down or off your debt in five simple steps:
1. Organize your debt
List every credit card you own along with an outstanding balance. Jot down the amount owed to each card issuer. Next, list the interest rate of each card. Repeat these steps for other loans you may have as well.
2. Choose your debt-crushing method
There are two approaches we recommend to folks who are seeking to get rid of their debt:
· The snowball method involves paying off your smallest debt first, and then moving to the next smallest until all debts have been fully paid.
· The avalanche method involves getting rid of the debt that has the highest interest rate first before moving on to the debt with the next-highest rate until all debts are paid.
Choose the method that makes the most sense for your personal and financial circumstances.
3. Maximize your payments
Once you’ve chosen your debt-crushing method, find ways to maximize your monthly payments. You can do this by trimming your spending in one budget category and channeling that money toward your debt. You can also find ways to get some extra cash for your payments, such as freelancing, Uber Eats driving, dog walking, etc.
4. Consider a personal loan to consolidate
When you consolidate debts to one low-interest loan, it’s a lot easier to manage the monthly payments. Plus, the savings in interest you won’t pay can be significant, especially if the new loan has a low-interest rate. If this approach sounds right for you, consider taking out a personal loan.
We can help consolidate these debts because surprises and big life events shouldn’t stop you from living your life to the fullest! That’s why we created our Live Your Life personal loan. Access the funds you need quickly & efficiently – For example**, $4,999 for 36 months as low as 9.99% APR*.
Visit https://www.wefloridafinancial.com/live-your-life-loan to see what you qualify for.
*APR = Annual Percentage Rate. **Payment Example: Estimated monthly payments on a $4,999 loan for 36 months for a well-qualified borrower at 9.99% APR = $32.27 per $1,000 borrowed. Rates are subject to change. Other rates and terms are available if you apply and qualify.
5. Negotiate with your creditors
Many credit card companies will be willing to lower your interest rate once you prove you are serious about paying down debt. After kicking off your debt payment plan, it’s worthwhile to contact each credit card company to discuss options.
No matter which strategy you go with or the methods you use for paying off your debt, commit to not adding more debt onto your card while paying it down. Paying off a large amount of debt will take time and willpower, but living debt-free is key to financial wellness. Best of luck on your debt-crushing journey!