Credit can be a valuable tool for reaching major life goals like going to college, buying a home, or starting a business. But other times, debt can pile up faster than you realize. Suddenly, those fun splurge items and vacations seem to stay stuck on your credit cards – with interest accumulating every month.
For some people, debt begins to feel claustrophobic, with high interest rates and multiple types of debt closing in, blocking the way to financial independence. Fortunately, it doesn’t have to be that way. We’ve rounded up these resources so you can start to learn how to manage debt and find your way to freedom.
Suze Orman’s Debt Management Resources: Known for her straightforward approach and no-nonsense financial advice, Suze Orman is always a huge fan of debt reduction. On her site, she includes insights on paying down debt in 10 steps, including renegotiating interest rates with creditors.
9 Way to Pay Off Debt: This helpful article from the Motley Fool features nine strategies for paying off debt, and although one of the tips is asking family and friends for loans (got a rich uncle?) there are many other useful insights, especially those related to how much interest you might be paying.
Dave Ramsey’s Debt Snowball Plan: Financial expert Dave Ramsey has won fans by going against conventional wisdom to pay off debt with the highest interest rate first. Instead, he advocates paying off the smallest debt first and gaining momentum toward getting out of debt completely. The plan might not work for everyone, based on the mix of debt you have, but the strategy may be worth considering if you think it will help you reach your goals faster.
360 Degrees of Financial Literacy’s Debt Payoff Strategies: A public service from the American Institute of CPAs, this site has a wealth of resources, including debt payoff strategies. There are great explanations of how lenders determine minimum payments, what effect additional payments have on your debts, and what you need to know when considering a consolidation loan.
Cobalt CU resources: With experts who can guide you through various debt strategies, Cobalt CU is here to help. Whether you want to explore credit card consolidation or choose a personal loan, we’re happy to talk about the best and most affordable way to reach your debt pay-down goals. We also have plenty of posts to help you with debt reduction, including:
- How to get out of debt: Breaking bad financial habits
- Wondering how to pay off debt? Here’s a handy guide to get you started
- Average credit card debt (and why you should aim for below average)
Also, check out the free Cobalt CU Debt Management Guide for tons of tips and strategies that can help.
What’s your best strategy for paying down debt? Share it in the comments below.