The New Year provides an opportunity to evaluate personal financial stability and set goals for improvement. For many, this means redoubling efforts to pay off credit card debt.
“In our evolving economy, financial health is critically important,” said Amy Maliga, financial educator with Take Charge America, a nonprofit credit counseling and debt management agency. “If you’re like most, reducing debt is a big part of the equation. While this can feel daunting, small steps can make all the difference.”
Maliga shares 13 tips for jumpstarting the journey to financial freedom:
Create a Budget: Budgeting is at the top of every financial to-do list because it works. Track your income and expenses and allocate funds toward debt repayment.
Use Autopay: Automate payments to ensure you’re on time and protect against late fees.
Pay More than the Minimum: Even an extra $20 a month will help you pay off the principal and interest more quickly.
Consider Additional Payments: If possible, make two monthly payments to reduce your balances faster and reduce temptations to spend when it’s unnecessary.
Cut Unnecessary Expenses: Conduct an audit of non-essential expenses, including subscriptions and memberships, and redirect the money toward your debt.
Sell Your Stuff: Sell old clothing, electronics and furniture through online stores or social media to earn quick cash.
Transfer Balances: If you’re paying a high interest rate, consider a balance transfer – just read the fine print first to assess potential fees and variable interest rates.
Renegotiate Debt: Contact your creditor to renegotiate payment terms. You can try this on your own or connect with a nonprofit credit counseling agency.
Talk to an Expert: Schedule a free credit counseling session to establish specific, measurable and achievable goals for debt repayment.
Consolidate Payments: Enroll in a debt management plan to consolidate your credit card payments into one, often lower monthly payment, saving time, money and stress.
Increase Income with Gig Work: Explore opportunities to boost your income – like Uber, TaskRabbit or freelance jobs – and earmark the money for debt.
Maximize Windfalls: Unexpected windfalls, such as tax refunds or bonuses, can significantly advance your debt reduction.
Get an Accountability Buddy: Lots of people have “gym buddies” to help reach their fitness goals. Buddies are great options for financial fitness and accountability, too.
For additional resources, visit Take Charge America’s Budget Tools.
About Take Charge America, Inc.
Founded in 1987, Take Charge America, Inc. is a nonprofit agency offering financial education and counseling services including credit counseling, debt management, housing counseling and bankruptcy counseling. It has helped more than 2 million consumers nationwide manage their personal finances and debts. To learn more, visit takechargeamerica.org or call (888) 822-9193.
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