by Gabby Barton, Marketing Specialist
When you are in debt, it can feel like an impossible hole to climb out of, and asking for help can be daunting. However, for those struggling with debt, it is crucial to stop creating new debt and focus on paying off existing balances. Emily Ripplinger, Branch Manager of Catholic United Financial Credit Union says, “Be honest with yourself about your financial situation, seek help from trusted sources like our Catholic United Financial Credit Union, and prioritize your debts strategically whether by paying off high-interest debts first or tackling the smallest balances.”
Visit www.catholicunitedcu.org for more information.
Ripplinger advises people in debt to write down all the debt you have, including balances, terms, rates, and payments. This will help you better evaluate your entire situation. Then, she suggests six simple steps to help you pay down your debt:
1. Budget Wisely
To stay out of debt, it is essential to budget wisely. Live within your means and distinguish between wants and needs. Create a realistic budget that ensures you only spend what you can afford.
2. Monitor Expenses
Regularly review and adjust your budget to stay on track. Monitoring expenses helps you see where your money is going and identify areas where you can cut back. Make a habit of checking your bank statements and account balances regularly.
3. Emergency Fund
Save for unplanned expenses to avoid relying on credit. Aim to build an emergency fund that can cover at least three months’ worth of expenses.
4. Pay in Full
Aim to pay off credit card balances and revolving debt each month. Paying in full avoids interest charges and prevents debt accumulation.
5. Timely Payments
Pay bills on time to avoid late fees and maintain good credit. Set reminders or automate payments to ensure you never miss a due date.
6. Read the Fine Print
Understand the terms of your loans and agreements. Always read contracts and statements carefully to avoid hidden fees and terms that could put you further into debt. Being informed helps you make better financial decisions.
By improving your financial habits, you can make informed decisions that support your long-term financial goals. If you have any questions or need personalized advice, do not hesitate to reach out to the Catholic United Financial Credit Union. They may be able to help with debt consolidation or provide advice to stay out of the cycle of debt.
