By Staff Writer | December 7, 2019
Mary Pahlke from Pixabay
It’s possible to become financially fit and ready to meet life’s challenges with the right plan. These tips may help you on a path toward financial freedom.
Make a plan — and stick to it. Make a budget, and don’t spend money unless it’s in the budget. In addition, consider using this free Debt Manager tool to get a personalized debt payment plan. The tool can help you calculate your debt levels and set goals.
Know what you owe. Review all your statements and highlight current balances, interest rates and minimum payments due. Decide on a plan of attack by focusing on the highest interest rate debts first. Communicate with creditors if you are past due or are close to being past due on any bills.
Start an emergency fund. If you’re working hard to get out of debt, you don’t want to let anything beyond your control mess it up. Start by setting a goal to save $1,000 before starting to pay off debt. Your ultimate goal is to have enough money saved to cover 3 to 6 months of living expenses. This cushion will help cover the unexpected.
Find extra cash. Consider what services you can cancel or items you can sell until your debt is paid down. A penny earned can be a penny that fights debt. Put any extra cash toward your shrinking credit card bills or loans.
Get support. Getting out of debt can be a major undertaking and may mean you need to enlist the help of others. Consumer Credit may be able to help you get out of debt and stay on track. Consider sharing your plans with a family member or friend, and ask them to hold you accountable.