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Five Ways to Manage Debt Differently
If you’re facing debt, you’re not alone. Credit cards, student loans and house payments can add up, making it difficult to stay on track.
Don’t panic—get started on your path to paying off debt with these five tips.
Prioritize Expenses
Take a look at where you’re spending money. Aside from your daily necessities, what can you cut out? Streaming services, eating out or new clothes are great places to start. It will be hard at first, but any extra funds you can put toward payments will be worth it in the end.
Automate Bills
Sometimes the biggest hurdle to paying bills is remembering to pay them on time. You can do your best to eliminate this error by setting up auto pay for all your recurring expenses. Just make sure you check your account on a regular basis to avoid overdrafts.
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Make More than Minimum Payments
Paying the minimum on a credit card extends how long it will take to pay off your balance AND it adds to the amount of interest you’ll pay. If you’re unable to pay the full balance, get as close as you can. You’ll be doing your future self a big favor.
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Consider Consolidation
If you have multiple sources of high interest debt weighing you down, you may have the option of consolidation. For homeowners, a home equity loan or HELOC with Vantage™ can be a powerful consolidation tool, potentially offering significantly lower interest rates than credit cards or other high-interest debts.
Keep an Eye on Your Credit Score
When you’re facing debt, high interest rates can be one of your main hurdles. If your credit score is in a less-than-ideal place, creditors may consider you a high risk and that tends to come with high rates. Check in on your score as you pay down debt and think about waiting until you see improvement before applying for a loan or line-of-credit. The Vantage mobile app allows you to monitor your credit score anytime, anywhere.
