Home >
Financial Resources >
Financial Tips >
Get Out of Debt
Tips for Getting Out of Debt and Staying Out of Debt
Once you’re in debt, it can be hard, but not impossible, to get out of it. Here are some ways you can do it.
- Pay bills on time. The late fees and penalties that many companies assess can add up and make it difficult to stay within your budget. Late payment of bills can also affect your credit rating, making borrowing money more expensive and financing more difficult to obtain.
- Work out a budget that reduces your spending and stick to it. Use our Brown Bag Savings Calculator to see how even making small changes such as eating out one less time a week can add up to real savings.
- Look at all the debts you have and determine which has the highest interest. Pay as much as you can toward that debt every month. Keep in mind that the interest rate can change on some forms of debt such as variable-interest loans and credit cards. Periodically check the rates to make sure you’re still paying off your highest rate debt first.
- Try to pay more than the minimum payment each month. If you are only paying the minimum, you are paying little more than the interest on the debt and not the principal. At that rate, you are likely to remain in debt for years. Use our Minimum Payment Calculator to determine how much quicker you can get out of debt by paying more than just the minimum required. If you find yourself in financial trouble, there are plenty of organizations, resources and free assistance that will help you manage your debt. Don’t hesitate to seek help.
