High monthly debt payments can dead-end your cash flow and prevent you from saving as much as you should toward your goals. Carrying too much debt can lower your credit score, which can affect your ability to get a job, buy affordable insurance or qualify for low mortgage or car loan rates.
When you consider the large amounts owed on credit cards, auto loans, mortgages and student loans, it’s not surprising that many people are feeling overwhelmed and stressed out by their debts.
If you’re feeling overwhelmed by consumer debt, there’s no time like the present to start tackling it. These strategies can help.
Small changes in spending habits can lead to significant savings over time.
Bigger isn’t always better. Consider downsizing and cutting back on expensive vacations and frequent dinners out, and think twice before buying expensive items.
Paying with cash straight out of your wallet may make you stop and reconsider unnecessary purchases.
Making only minimum payments on credit cards could significantly increase the amount you’ll eventually pay. Have a plan to pay off your balances one by one. As soon as you’ve paid off the balance on one card, add that amount to your payment on the next card.
Late payments may result in fees and a lower credit score.
Article is adapted from content provided by DTS.
