Make a debt reduction plan
Which debt are you going to pay off first? Perhaps you favor paying off your debt with the highest interest first. Or maybe you prefer to tackle the lowest balances first to get that feeling of accomplishment that comes when you achieve your goal. If you have multiple debts or high interest debt it may be in your best interest to explore a debt consolidation loan: a loan you use to pay off other loans. Debt consolidation can combine multiple loans into a single payment or potentially pay off a high-interest loan with a new loan at a lower interest rate, saving you money.
Pick a strategy, stick to it
Whatever your philosophy, pick a strategy and get started. Maximize your payment on the debt you are going to payoff first, and make minimum payments on everything else. Once you have paid off that bill, take the money you were paying on that debt and add it to the minimum payment you’re making on the next debt. Keep going until everything is paid off.
Check rates and calculate
Pay close attention to the interest rate you are paying on your loans, and look for ways to reduce your interest payments. Can you transfer several credit card balances from your high-interest cards to credit cards with lower rates and no balance transfer fee? What about a home equity line of credit or a personal line of credit large enough to pay off all your debt?
Our calculators can help you decide if you can benefit from consolidating some high-interest loans into lower-interest forms of debt.
Now that you have a plan to pay off your debt, create a budget that allows you to meet your necessary expenses without taking on any new debt.Go to main navigation