- Access Your Current Situation
- Cut Unnecessary Expenses
- Choose A Repayment Strategy
- Consider Debt Consolidation
- Stay On Course and Be Patient
The first step to eliminating debt is understanding where you are. By developing a complete picture of your finances, you can confidently prioritize which debts to tackle first.
Once you have an overview of your financial situation, it’s time to review spending habits and cut back on non-essential expenses. The more money you can free up, the more you can put towards your debt to pay it off faster.
Third, choose a repayment plan. There are two strategies to consider: the snowball method and the avalanche method. The snowball method prioritizes paying off the smallest debt first, giving you the satisfaction of eliminating each debt item and the motivation to work towards the next. The avalanche method prioritizes the highest-interest debt first, helping you save money in the long run.
Fourth, consider consolidation if you are juggling multiple debts with varying interest rates. Putting them together into one loan could simplify the repayment process. Streamlining your finances makes it easier to focus on long-term goals.
Finally, keep moving forward and give yourself grace. Seek help from Brewery Credit Union. We have guided members to achieve many goals. Through open conversations and tailored action plans, we’ve helped members better their credit scores, enabling them to secure their first vehicle, home, and so much more. Brewery Credit Union is a better place to borrow and save!
