For the average American, interest payments consume the largest chunks of their monthly paycheck. There is interest on credit card balances, student loans, store accounts, and mortgages.
Here are some ways to get started paying it off this year!
- Make a resolution that by December 31 of this year, you will have significantly reduced your high-interest debt. It takes a plan and perseverance to achieve your goal.
- Use your income tax refund, which is estimated to be around $3,800 this year for the average American, to pay off your highest interest debt first. It is the one costing you the most and will provide the biggest relief to get it paid off. The sooner you file, the sooner you get your refund.
- Next, adjust your withholding or estimated quarterly payments to be sure you are likely not to get a refund next year. For many, this could mean an extra $300 per month in your pocket that can be applied towards debt reduction. So think about it, if you do both of these things, you may be able to reduce $7,000 of debt in 2017! Now that is a good way to start the New Year!
For some, the interest and penalties on your credit cards are out of control. You are in a spiral and need expert third party help to get you back on track. You may qualify for a debt management plan to pay back those accounts at a much lower interest rate.
Crown has partnered with Christian Credit Counselors, a highly reputable firm, to help you get out of the credit card trap you may be caught in. These three steps are possibly your best moves to escape living on the financial ledge this year. Learn more at Crown.org.