Finding the Right Strategy to Pay Off Debt | St. Johns Bank
Are you living with debt? If you are, you are not alone! Altogether, Americans owe billions of dollars in credit card debt alone.
Our team at St. Johns Bank wants you to know you don’t have to fall into this statistic. We have a few tips to help you get out of debt so that you can begin living a financially healthier life.
Start Paying Off Debt
Let’s take a look at some steps you can take to start making a dent in your family’s debt:
Create—and Stick to—a Budget
When was the last time you and your family created a household budget?
Budgets are important to ensure every dollar has a home, and that you do not spend more than you make. If you haven’t established a budget yet for this year, it is not too late to start today!
Start Paying Debt Down
List all your debts from highest to lowest. Starting with the debt that has the highest interest rate, pay more than the minimum each month, while also paying the minimum on all other debts.
Once that debt is paid in full, move on to the next, and so on and so forth. Before you know it, you will have your debt tackled.
Get a Side Gig
While a second job might not work for everyone’s schedule, it can help to pay off debt faster.
From freelance writing to pizza deliveries to selling stuff online, there are numerous ways to make extra money to put toward paying off your debt.
Manage Future Debt
When all your debt is paid off, set yourself up to where your debt doesn’t become unmanageable again.
Set up an emergency fund for when something breaks so you can use cash and not credit, auto-pay your bills so you avoid racking up late fees, and really think about every purchase before making it. Is it really something you need, or just something you want?
Once out of debt, it’s important to start thinking about your savings goals. Contact the financial professionals at St. Johns Bank today for information on our savings account options.