Debt can feel like the albatross of your financial life if it’s weighing heavily on your wallet and on your mind. But before we tackle the subject of freeing yourself from it, it’s important to realize that not all debt is bad for you.
债务的光明面
Establishing some level of debt is usually necessary in life. Borrowing money wisely and affordably can help you acquire large ticket items when you don’t have enough cash to pay for them. We’re talking about homes and vehicles, mostly – not necessarily jumbo flatscreen TVs and JetSkis.
米兰达的提示: When it comes to high-priced items, save for what you want and borrow for what you need.
The other upside of debt is the fact that it establishes your credit rating, which determines your pricing on future loans. Without any borrowing activity within your credit history, there’s no indication of your consumer behavior and no gauge for your credit score.
米兰达的提示: When it comes to your credit cards, keep your balances under 30% usage of your credit limits to maintain strong capacity and boost your credit score.
债务的雪面
There are two highly popular debt repayment strategies we talk about with members. Both focus on one major bill at a time, so your debt is easier to manage.
They are called “The Snowball” and “The Avalanche” and you can explore each method to determine which you prefer for your own debt repayment plan. We recommend you begin by listing in a chart all your debts and including the creditors you owe, 你的最低还款额, 你的整体结余, 还有利率.
债务雪球：从小处开始
用这种方法, you focus on eliminating the smallest balance you owe first, while also making minimum payments on all your other debts. 通过专注于较小的债务, you will see success sooner when you remove an entire line item from your chart, and it will mentally motivate you to knock out other progressively larger balances the same way.
债务雪崩：高起点
This method tackles your highest interest rate first, 不考虑平衡, then progresses to your lowest interest rate. This can save you some money in the long run because you’ve eliminated your higher priced debt first your lesser interest rates will be okay sitting for longer.
Miranda’s Top Seven Debt Repayment Tips
Find a Way to Budget That Works for You
在电子表格, tools built into your online banking, 为你做预算的应用程序, 或者现金信封系统, 有很多选择. Finding something that works for you and sticking with it will be important.
学习你的消费习惯
Pulling expenses from the last few months and categorizing them helps you figure out how much money you have left to save or pay down debt and where you should trim your budget.
分配责任
Partners Let the people in your life know you are working toward a financial goal. Finding like-minded people or those who want success for you will help you stay the course if things get tough.
不要剥夺自己
If you have decided to go on a debt repayment journey, you may have to say “no” to a lot of things. Remember this is temporary, and it’s okay to reward yourself once in a while. Set smaller milestones and celebrate when you hit them!
有应急储蓄基金吗
生活就是这样，对吗？? Don’t blow your budget or set yourself up to fail by not accounting for emergencies. Start off by saving at least $1,000 to cover unexpected costs or to buy you some time while you find another solution.
记住，你并不孤单
Sometimes it feels like the only way to live these days is with heaping piles of debt. 事情并不一定要这样! Try seeking out friends, family, or internet groups dedicated to smart money. 找不到其他人吗? 打电话给我!
增加每月现金流量
There are several ways you can trim a budget to increase your monthly cash flow to put more toward your debt. Cancel unnecessary subscriptions, 对当前贷款进行再融资, 巩固债务, 将爱好或技能货币化, or sell items from around your home.
Learn more about your debt from a previously live broadcast of 元素 Live. Click here to watch the seminar.
作者简介
Miranda Finley has served 利记app官网 for 7 years. We call our experts like Miranda “Relationship Managers” because their primary purpose is to build strong connections between the credit union and our partner organizations. Miranda is an expert at tackling debt, 信贷管理, 预算, among many other financial topics. She lives in Johnson County with her husband, Scott.
