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Strategies To Help Reduce Debt - Money Tip Tuesday
Struggling with debt can feel overwhelming, but with the right strategies, it's possible to regain control and build a more secure financial future. Fortunately, there are practical and proven methods to reduce and manage debt effectively, no matter your financial situation.
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Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.
Debt is a tool, and it can be very useful when used properly. Borrowing money can help us buy our first car, get into our first home, or even pursue that degree for our dream job. But like any tool, it's possible to get into trouble if we don't understand how to use it.
Taking action when debt becomes burdensome is essential. Recognizing the various signs can detect unmanaged debt, and this awareness can bring a sense of reassurance.
Unmanageable debt can reveal itself in some or all of the following ways: There’s no ability to save money because it’s all going to payments, you have a heightened sense of worry, stress, or anxiety over financials, and your debts aren't being paid on time and are heading towards or currently in collections.
Based on these factors, reducing debt to a manageable level is a net positive for your life. It's not just about the numbers; it's about the hope and freedom it can bring. Reducing debt not only improves financial health but may also improve mental health.
Pursuing and achieving financial freedom usually starts with some form of reducing debt and proper management is essential to get there. Once managed, you can push that throttle forward and speed rapidly toward finally getting it under control.
Here are three top strategies to reduce and manage debt effectively:
Explore consolidation loans or other debt assistance programs. If debts are tough for you to manage, a debt consolidation might take that pressure off and give you the necessary breathing room. It enables you to group some or all your various debt bills into one consolidated payment that's easier to manage. For help, contact staff at your local bank or credit union. They could help illuminate the right options for your situation and cover the various details involving a debt consolidation.
You can also explore ways to refinance your debts, whether auto, personal, credit cards or student loans to a lower interest rate. By shopping around for lower rates, you may be able to decrease your monthly payment, freeing up more cash to put towards your existing debt. This can also be a significant saving over the life of the loan, making it a worthwhile strategy to consider. And you can lower bills by negotiating with providers and businesses for better rates or payments. Cell phone providers, car insurance companies, cable and internet providers, and even gym memberships will likely try to work with you on a better deal. If not, shop around and see if you can find that better deal elsewhere.
Explore a new job for opportunities that might land you a better salary or consider picking a second job to work a few extra hours each week. Even working an extra 10 hours per week could provide the right amount of buffer in your budget to chip away at that big debt pile.
If you need something more flexible to bring in more money consider gig work or freelance work on the side to bring in extra cash. You could try delivery or Uber driving, pet sitting, or dog walking, which are all popular ways to easily try out gig work. Also, don't forget about other opportunities like tutoring, graphic design, photography, or babysitting. If you decide to try this, remember to set aside a portion of your earnings for taxes.
If you need help getting started on your debt payoff plan, we offer webinars to watch on YouTube that cover a variety of budgeting tools and strategies as well as putting together a debt payoff plan tailored for your situation. Watch on demand using the links posted in the show notes.
If there are any other tips or topics you would like us to cover, let us know at [email protected]. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!
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By Triangle Credit Union
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Struggling with debt can feel overwhelming, but with the right strategies, it's possible to regain control and build a more secure financial future. Fortunately, there are practical and proven methods to reduce and manage debt effectively, no matter your financial situation.
Links:
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.
Debt is a tool, and it can be very useful when used properly. Borrowing money can help us buy our first car, get into our first home, or even pursue that degree for our dream job. But like any tool, it's possible to get into trouble if we don't understand how to use it.
Taking action when debt becomes burdensome is essential. Recognizing the various signs can detect unmanaged debt, and this awareness can bring a sense of reassurance.
Unmanageable debt can reveal itself in some or all of the following ways: There’s no ability to save money because it’s all going to payments, you have a heightened sense of worry, stress, or anxiety over financials, and your debts aren't being paid on time and are heading towards or currently in collections.
Based on these factors, reducing debt to a manageable level is a net positive for your life. It's not just about the numbers; it's about the hope and freedom it can bring. Reducing debt not only improves financial health but may also improve mental health.
Pursuing and achieving financial freedom usually starts with some form of reducing debt and proper management is essential to get there. Once managed, you can push that throttle forward and speed rapidly toward finally getting it under control.
Here are three top strategies to reduce and manage debt effectively:
Explore consolidation loans or other debt assistance programs. If debts are tough for you to manage, a debt consolidation might take that pressure off and give you the necessary breathing room. It enables you to group some or all your various debt bills into one consolidated payment that's easier to manage. For help, contact staff at your local bank or credit union. They could help illuminate the right options for your situation and cover the various details involving a debt consolidation.
You can also explore ways to refinance your debts, whether auto, personal, credit cards or student loans to a lower interest rate. By shopping around for lower rates, you may be able to decrease your monthly payment, freeing up more cash to put towards your existing debt. This can also be a significant saving over the life of the loan, making it a worthwhile strategy to consider. And you can lower bills by negotiating with providers and businesses for better rates or payments. Cell phone providers, car insurance companies, cable and internet providers, and even gym memberships will likely try to work with you on a better deal. If not, shop around and see if you can find that better deal elsewhere.
Explore a new job for opportunities that might land you a better salary or consider picking a second job to work a few extra hours each week. Even working an extra 10 hours per week could provide the right amount of buffer in your budget to chip away at that big debt pile.
If you need something more flexible to bring in more money consider gig work or freelance work on the side to bring in extra cash. You could try delivery or Uber driving, pet sitting, or dog walking, which are all popular ways to easily try out gig work. Also, don't forget about other opportunities like tutoring, graphic design, photography, or babysitting. If you decide to try this, remember to set aside a portion of your earnings for taxes.
If you need help getting started on your debt payoff plan, we offer webinars to watch on YouTube that cover a variety of budgeting tools and strategies as well as putting together a debt payoff plan tailored for your situation. Watch on demand using the links posted in the show notes.
If there are any other tips or topics you would like us to cover, let us know at [email protected]. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!