Debt Reduction Tips

Debt is something that millions of Americans deal with. Not all debt is necessarily bad. We use it to pay for items and services we otherwise wouldn’t have the money for such as cars and education. Unfortunately, life happens, and circumstances change which can make us quickly rack up large amounts of debt. It can be overwhelming having to pay off credit cards, medical bills, student loans, and car payments. Here are some tips for helping you pay off your debt.

• Pay More Than the Minimums: Paying the minimum on your debts is necessary but doing so will make paying off debt take a long time. Pay as much extra as you can afford to pay off your debt more quickly.

• Reduce Discretionary Spending: Reduce how much you spend on things outside of your necessities. If you drink coffee every day, try to drink coffee every other day. Do not order takeout as frequently, try to carpool to work, and do anything else to help cut your monthly expenses.

• Eliminate Unused Subscriptions: We all have monthly subscriptions to services that we may no longer use such as Netflix, Hulu, Paramount +, Disney +, Etc. Go through your bank statement and figure out what subscriptions you are still being charged for but do not use and cancel them.

• Use the Snowball Method: The snowball method of paying off debt is simple. It is paying off your smallest loan/debt first and then keep tackling the next smallest loan you have. This will help you stay motivated as you will notice that your debt is going away.