Effective Ways to Manage Your Debt
A good majority of adults in the United States has some form of debt. Whether it’s a mortgage, car, or student loan, we all depend on loans for significant changes that affect our lives. Managing your debt effectively is key to your financial health. If mismanaged, it can easily get out of control, heading you down a long spiral that brings you down with them. Here are tips to help improve your financial standing and make yourself debt-free
Spend Less Than You Earn
This is by far the best way to manage your debt effectively. Make a reasonable budget that consistently keeps your income above your expenses and stick to it.
Pay More Than Minimum Payments
Whatever amount you owe in debt, one of the best ways to pay sooner is to pay more than the minimum monthly payment. By doing this, you’ll speed up the payoff process and ultimately save on interest throughout the life of your loan.
Rank Your Debts and Pay off the Most Expensive
Identify the most expensive debts and pay them off first. Highest interest rate debts should get the priority on repayment because they cost the most money.
Consider Debt Consolidation
Consolidating multiple debts into a single payment with a lower interest rate can make your payments manageable or the payoff period shorter. Assuming you have enough equity in your home, you can use a HELOC to consolidate your debts and pay off your high-interest debts.
No matter the amount of debt you owe, it’s important to know there is a way out. Bragg Mutual Federal Credit Union offers a convenient way to consolidate your debts with our special HELOC with no closing cost for loans over $25,000. To learn more about a HELOC through Bragg Mutual FCU, visit braggmutual.org/home-equity-lines-of-credit-heloc/ or speak to one of our knowledgeable staff by calling 910-222-1500. Take control of your finances today!
*Subject to credit approval. Rates disclosed reflect our best rates and may be different based on credit underwriting or services used. All loan rates are subject to change without prior notice. The information posted here is a service to our members. Although BMFCU strives for information accuracy, we do not guarantee or warrant information posted here.