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Smart Strategies to Help Pay Off Debt
Special to The Truth
From car loans to student
loans, credit card balances and other revolving debt, U.S.
consumer debt is higher today than ever before.
Indeed, that figure now
exceeds $4 trillion for the first time, according to
CNBC.com 2019 estimates. To reduce and eliminate your own
debt, consider the following tips:
• Review where your money
is being spent. Create a budget for monthly expenses and
stick to it.
• Get inspired by
expert-touted financial strategies and pick one to follow.
One popular example is the debt snowball plan, whereby you
pay off bills smallest to largest, no matter the interest
rates. Or, use the debt avalanche method, paying off highest
interest rate debts first, or balancing transfers to credit
cards with the lowest interest rate.
• Fifty-eight percent of
Americans report less than $1,000 in total savings,
according to a 2018 GOBankingRates survey. Without an
emergency fund, unexpected expenses can quickly become a
crisis, throwing you off track. Work toward growing a
savings fund, even if it’s just $500 to $1,000.
• If a retirement savings
program is offered by your employer, participate. Of
Americans 55 and older, 48 percent have nothing put away in
a 401K-style contribution plan or individual retirement
account, according to the U.S. Government Accountability
Office. Many employers offer matching programs, which is
essentially free money. Don’t leave it on the table!
• If your company offers
an employee purchase program, consider enrolling, as this
can offer you greater financial flexibility. One example is
Purchasing Power, one of the fastest-growing voluntary
benefit providers, which gives workers the option to pay for
consumer goods and services over the course of six or 12
months through automatic payroll deduction. With no interest
on the purchase, no fees and no credit check, this a viable
way to break the cycle of predatory lending options.
“Those high-interest
credit cards, payday loans, pawn, title pawn and rent-to-own
contracts might all look like lifelines when you’re faced
with a necessary expense you can’t immediately afford, but
they can be traps leading to compounding interest rates and
hidden fees,” says Richard Carrano, Purchasing Power CEO.
For more information,
visit purchasingpower.com.
• Leverage any other
financial wellness benefits offered by your employer, like
budgeting tools, financial counseling and automated savings
and bill-paying services.
• Engage family members in
your efforts. Together, celebrate small wins achieved each
week or month. Remember, don’t be too hard on yourself. It’s
a marathon, not a sprint.
U.S. Consumer debt may be
at an all-time high, but it doesn’t need to be for you
personally. Get inspired to gain a solid financial footing.
Courtesy StatePoint
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