10 Tips To Help You Get Out Of Debt
Updated: February 26, 2024
Debt is overwhelming and may seem impossible to pay off, but Launch CU has you covered! Use these 10 tips to help you get out of debt. If you find that you are continuing to collect debt and have no idea how to pay it all off, developing a step-by-step strategy is your first task. At Launch CU, we care about your financial well-being. That is why we created this guide to help you pay off your lingering debt so you can go beyond and reach your financial goals.
1. Create a Budget and Stick To It
Set a monthly budget that includes all of your monthly expenses. You can use an Excel spreadsheet or an expense tracking spreadsheet to help you track your expenses, or use a budgeting application like Quicken or Finance Works. The hardest thing to do when following a budget is differentiating between needs and wants. This means that you may have to wait to purchase those new pair of shoes.
2. Balance Transfers Can Be Extremely Helpful
If you are paying a high interest rate on your credit card, think about switching to a credit card with a lower interest rate. Apply for a credit card with Launch CU! Our credit cards have no annual fee*, and no balance transfer fee*. If you are not sure what your interest rate is on your credit card, make sure to check on your next statement. You may be surprised by how much you are paying in interest.
3. Think about Consolidating Your Debt
Consolidating your debt could help you pay less interest, and could help to get you out of debt faster. When you consolidate your loans with Launch, you get low rates, simple interest, no application fee, and no prepayment penalties.
4. Pay off Your Most Expensive Debt First
If a balance transfer is not the best option for you, pay off your credit card with the highest interest rate first. Paying off debt is just like anything else in life. The hardest tasks are always the most painful, but once they have been tackled it’s smooth sailing.
5. Consider Paying More Than the Minimum Balance
To make a dent in your debt, you will need to pay more than the minimum balance on your statement each month. According to US News, paying the minimum balance takes only 2-3% off your outstanding balance and only prolongs your debt payoff.
6. Think about Making More Frequent Payments
When you set up your budget, try to budget weekly or bi-weekly payments instead of monthly payments. Doing this will help you pay your debt off faster. If you are not able to pay your bill weekly or bi-weekly, think about paying 1.5 to 2 times your minimum payment on your monthly statement.
7. Stop Buying Items on Credit Until You Have Your Finances Under Control
If you run to the store, think about stopping at an ATM beforehand to get cash and leave your credit card at home, or bring your ATM/Debit card to the store for purchases. Remember, one of the many perks of being a Launch CU member is the ability to use your Launch CU ATM/Debit Card at any Launch CU branch ATM and any Publix Presto ATM machine free of charge.
8. Put Your Tax Refund or Holiday Bonus Toward Your Debt
We know it is very easy to spend your tax refund or holiday bonus on personal items, but putting this money towards your debt will pay off in the end. Improving your financial well-being is much more important than that new flat-screen TV!
9. Use Some of Our Tools and Resources
At Launch CU we strive to provide our members with tools and resources to help you keep track of your finances. Think about checking out: CreditTrack, Debt In Focus, Financial Milestones, Money Management Planner, and Money Smart. For details on each of our financial tools, click here.
10. Above All, Never Hesitate to Contact Us
Give us a call at 321-455-9400 (inside Brevard) or 800-662-5257 (outside Brevard) if you have any questions relating to your debt. Remember, you are not alone. We are here to help and are dedicated to helping you find a way to improve your financial well-being.