Credit card bills, mortgages, and student loans can pile up and suddenly spin out of control, making financial security seem like a distant and intangible goal. But, debt doesn’t have to be a lifelong sentence.
Taking control of your bills takes determination, discipline, and a whole lot of patience—but it is possible. Try the tips listed below, and watch your debt drop faster than you can say “early retirement.”
Run your credit report. According to a Federal Trade Commission report, it is not uncommon for consumers to find mistakes on a credit report. Before you begin tackling big chunks of debt, make sure they belong to you by requesting a free annual credit report at annualcreditreport.com. Once you’ve obtained your credit report, review it carefully to ensure all charges are known and legitimate, and reach out to credit agencies about inaccuracies.
Set a budget. Compile a list of your regular expenses and compare it with your income. If you are not earning enough to cover your bills, cut costs where you can by giving up nonessentials, such as cable TV or gym memberships. Keep in mind that you don’t have to do without forever—just until your debt is under control.
Cut up your credit cards. Or at least lock them away. The last thing you want to do when facing a mountain of debt is add to it. Use credit cards only in case of emergency.
Prioritize. Commit to paying down your debts. Pay off balances with the highest interest rates first, but continue paying down lower-interest debt simultaneously. If you have high-interest debt, consider a debt consolidation loan with a low interest rate.
Why struggle to pay your bills when TEG Federal Credit Union may be able to help? If you’re making minimum payments on high-interest credit cards, a Debt Consolidation Loan could save you thousands of dollars and help you get out of debt in a fixed period of time. Talk to us about your situation—we want to hear your story. You can break free from your debt! Apply for a TEG Debt Consolidation Loan online at tegfcu.com or in any TEG branch today.