Tips for Paying Off Debt Quickly | St. Johns Bank
The average American carries $26,621 in consumer debt. If this statistic sounds familiar, it may be time to focus on paying off debt.
Unfortunately, there aren’t any shortcuts when it comes to paying off debt. In reality, we aren’t reinventing the wheel here. Like any other financial goal, debt payoff requires commitment, a level of discipline and time.
When you’ve decided to take the plunge into financial security, here are our top tips for paying off your consumer debt once and for all!
Make Debt Payoff a Priority
This sounds obvious, but not everyone makes a point to pay on their debt every month. Yes, you’re likely paying the minimum amount, but you should be paying more if you’re trying to squash it for good. Essentially, you have to be intentional about your debt payoff journey.
Instead of automating the minimum monthly payment on your credit card, go through your financials and determine how much you can really put toward debt. According to experts, 20% of your net income should be put toward financial goals, including debt payoff and savings.
While this percentage may not apply to everyone, it is a good starting point for determining how much you can be putting toward consumer debt payoff.
Stop Using Your Credit Cards
As hard as this may be, committing to using your debit card and not your credit cards for purchases can prevent your debt from building. Less money spent on a credit card equals less interest accrual.
If you have to, place your credit cards somewhere you won’t be tempted to grab them for every purchase, such as your house safe. If you want to carry your credit card, try placing a sticky note on it with a message reminding you of your financial goals.
Choose a Payoff Strategy That Works for You
No two debt payoff methods are the same! Depending on which money guru you follow, you’ll likely be told that one method works better than the other.
Choosing a debt payoff strategy that works for you, and your needs, can help motivate you to continue with your goals. If you don’t feel motivated every time you make a payment, or pay a credit card off, it may be time to try out a different strategy.
When you’re working on paying off debt, don’t get discouraged! Becoming debt-free and more financially stable is worth the time, discipline and commitment.
For all of your money management needs, St. Johns Bank is here for you. Contact us today to learn more about what we have to offer our customers!