Debt Reduction

Have debt? These tips will help you pay it off more quickly.

Transcript

Hey, it’s Jason, senior consumer loan advisor with VSECU. A great way to reduce debt is to pay off your high interest rate credit cards or loans first. This doesn’t mean you can ignore lower interest rate debt, you’ll still have to make monthly minimum payments on all of your debt. The trick is to pay extra on your high interest rate debt until it is gone. When you’ve paid off the high interest rate debt, focus on the next high interest rate credit card or loan. So, now you’ll make the minimum monthly payment plus the extra payment on the next high interest rate debt. Every time you pay off a credit card or a loan, use the extra to pay off the next loan. As you can see, the payments begin to snowball, allowing you to pay off debt more quickly. Organization is key. Once you’re done paying off your debt, only buy things you can afford and pay off by the end of the month. Visit our blog for more money saving tips.