Simple Ways to Pay Down Debt Faster - Money Tip Tuesday

How would you like to be debt free sooner, or at least lower your existing debt to ease up on some financial stress? It’s time to take some simple steps that will help you pay down your debt faster and reach financial freedom sooner.

Links:

• Learn more about using a personal loan for debt consolidation 
• Check out the current rates for various loans and contact Triangle if you have questions about refinancing
• Learn more about Triangle's Money Management tool for getting out of debt
• Total Money Makeover by Dave Ramsey
• Get the Hell out of Debt by Erin Skye Kelley
• Money Rules by Jean Chatzsky
• Follow our podcast Facebook, Instagram and Twitter

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

If you’re tired of feeling buried in debt and want to start making moves to get out of it there are steps to take that will get you debt free sooner than you think. 

First, you can make extra payments towards your debt. Next time you pay your bill, try adding a little more to that payment. Round it up to the nearest $50 or maybe $100 or whatever you can afford. If you do this consistently over time, you’ll be able to shave months, and maybe years, off your loan. You could also try to pay more frequently, like twice a month.  Keep in mind though, that before doing this, check with the lender to verify there are no penalties for making extra payments. 

Second, if you can, consolidate multiple debts into one using a debt consolidation personal loan. This will help you stay organized by combining your debt into a single, easy payment. Plus, a debt consolidation personal loan will most likely offer you a lower interest rate than what you’re already paying. 

Third, you can refinance your loan. Refinancing will allow you to do one of two things. You can refinance the loan for a shorter term, which means you’ll pay it off earlier, or you can refinance at the same term, but for a lower rate. If you choose to go with a lower rate, you can then throw the extra money you have towards the new bill as an extra payment towards principle. 

Fourth, you can adjust your spending habits to better manage cash flow. By keeping your expenses lower you’ll be able to free up cash to put towards extra loan payments. You can try freezing your credit card spending, rebalance your budget to cut out unnecessary expenses and renegotiate certain bills like insurance and others to see if you can lower any of those costs. 

Fifth, get inspired and organized by using an app or other tool. Do an internet search for debt management apps that keep all your information organized and offer strategies and plans to stay on track. Triangle also has a useful Money Manager tool within your online and mobile banking account that you can start using to set goals on getting out of debt. If you’re a reader, check out some top-rated books for more tips and inspiration on getting out of debt like Total Money Makeover by Dave Ramsey, Get the Hell out of Debt by Erin Skye Kelley, and Money Rules by Jean Chatzsky. Explore other resources like videos and podcasts if you’re looking for more inspiration. 

Getting out of debt is a journey. It requires focus, discipline and effort. But if you’re motivated to be debt free, or at least reduce the burden that you’re carrying, making these efforts can fast track you towards that goal. 

If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal Facebook and Instagram pages and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!