14
|
r e d f c u.o r g
Need a "get out of debt" plan or just
need someone to read over your credit
report with you? Redstone Federal
Credit Union's accredited financial
counselors can help.
Do not email any account or personal identification information.
I've decided that 2018 is my year to get out of
debt. It's a daunting task. Where should I start?
If you're one of the millions of Americans who have added "becoming debt-free" to their
New Year's resolutions, get started with these simple steps.
1. List your debts and interest rates. It's time to be honest with yourself. Write
down all your loan balances and their interest rates, which should be listed on each
statement, in order of rate from highest to lowest.
2. Focus on the highest rate debt. e highest rate is costing you the most,
so make additional payments whenever possible to pay it off quicker. Continue
making minimum payments on your other loan balances to avoid additional fees
and penalty rates.
3. Transfer/consolidate your balances. Consider opening a lower rate credit card
or personal loan and using it to pay off your higher rate balances.
4. Pay yourself first. It may seem counterintuitive to put money in savings when
you're trying to pay off debt, but having cash on hand in case of an emergency will
keep you from going further into debt. Try to keep at least $1,000 in an emergency
fund for unexpected expenses.
5. Spend less. Write down your budget – how much money you're bringing in and
where your money is going. Look for ways to cut back, such as eliminating cable,
skipping the clothes shopping and cutting back on eating out. Put some of this
savings into your emergency fund.
YOU ASK – WE ANSWER!
Money Repair
Call Redstone at 256-722-3796 to schedule an appointment with an
accredited financial counselor or send your financial questions
to aspire@redfcu.org.
