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Reduce High-Interest Debt

With all the offers for credit cards out there and financing so readily available, it’s easy to get into debt, but hard to get out. Here are some ways to get, and stay, debt free.

Pay off higher-interest debt first

Not all debt is the same. Interest rates vary among different types of loans and credit cards. Some even start low and go up after an initial period. Determine which of your loans and credit cards have the highest rates and pay those off first.

Pay more than just interest

Did you know that if you pay only the minimum amount on your credit card balance you are primarily only paying the interest on the loan, not the principal. Work to pay more than the minimum on your credit cards and always try to pay off your balance in full every month.

Pay on time

Did you know that a late payment can cause your interest rate to increase and lead to additional fees? It can also negatively effect your credit score which could make buying a house more difficult, insurance more expensive, or cause you to be passed over for a job.

Shop for interest rates

Use the differences in interest rates to your advantage. By choosing the loan that’s right for you and shopping for the lowest interest rate, you can save a lot of money.

Debt consolidation

Let Community Bank ‘jump start’ your debt-reduction efforts with our Debt Consolidation Loan*. Ask your local Community Bank associate for more information on this no collateral, no annual fee loan.

Example - pay and save

*Credit subject to approval and normal credit standards apply.

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