In 2017, 28% of Americans made their New Year’s Resolution to pay down debt.
If this was your resolution too read on for our five tips to make 2019 the year you ditch debt for good!
1. Know What You Owe
You won’t be able to get your debt under control let alone ditch it if you don’t know what you owe. Take stock of every debt you owe including student loans, credit card debt, or any other forms of debt you’re trying to pay off. While you’re doing this you should also look at the interest rate for each debt to help you understand which is costing you the most money.
2. Break Up Your Goal Into Smaller Tasks
People are better at sticking to smaller, actionable goals than they are abstract goals. If your goal is to ditch debt but you must pay down a large sum it’s easy to be overwhelmed. Instead break your goal into smaller goals with action items you can easily hold yourself accountable for. Saving $20 a week to pay down debt seems much more manageable than tackling the whole thing at once!
3. Pay Off Your Most Expensive Debt First
If you’re paying the same amount on all of your debts you might be costing yourself more money. Especially if one debt has a much higher interest rate when compared to all your others. It may benefit you to focus all your efforts to pay off the most expensive debt first, and only pay the minimum on your others until it’s paid off.
4. Switch to Lower Interest Credit Products
With high interest credit card debt it might make more sense to instead take out a fixed rate personal loan to pay down your debt. This will cost you less money in interest and help you conquer your debt this year. Look for a card with the best interest rate. Consider opening a new credit card with a 0% APR* balance transfer offer, like the PCU Platinum Rewards Mastercard. Just make sure you can pay off the debt you’re transferring in the time the offer is good if you do so! Learn more about credit cards in Rockland and Bergen County.
5. Reward Yourself When You Reach Milestones
You won’t pay down debt any faster if you view it as a punishment. Instead when you reach milestones or payoff goals you set for yourself. Just make sure your rewards don’t damage all the progress you made!
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Read more in Consolidate Your Debt in 2021.
Related Blog: How to Pay off Your Mortgage Faster
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