Debt Management

Carrying debt can be stressful, costly and get in the way of other financial priorities. Create a plan to reduce it so you can focus on more important things.

Get Started!

If paying down debt is on your "to do list" but you aren't sure where to start, we can help. Take these steps and get started today.

Know What You Owe

To develop your game plan, start by taking inventory of your current debts. Make a list and be sure to include:

Lender and type of debt
Current interest rates
Minimum monthly payment
Balance
Any special offers and when they may expire

Review Your Budget

Now that you have a sound understanding of your current debt load, take a look at your budget to see how much you can afford to allocate monthly to paying down debt. Look for expense items that you can eliminate, reduce, or temporarily suspend while you focus your efforts on paying down debt faster. You may also want to seek out opportunities to increase your income to speed your efforts.

If you do not have a budget, this is a great time to get started.

Strategies that Help

An effective debt repayment strategy can save you money and time! Review the options below and run the numbers to see which strategy makes the most sense for you.

The Avalanche Method prioritizes paying off the highest-interest debt first while making minimum payments on others. Mathematically, this is the most cost-effective approach.

List debts from highest to lowest interest rate
Pay as much as possible on the top debt, while making minimum payments on the rest
Move down the list as debts are paid off

The Snowball Method focuses on paying off smaller debts first, reducing the number of bills and providing motivational momentum.

List debts from lowest balance to highest
Pay as much as possible on the smallest debts, while making minimum payments on the rest
Move down the list as debts are paid off

The Consolidation Method allows you to bundle multiple debts into one loan with a fixed interest rate and term. It offers several benefits, including simplifying your finances by reducing monthly payments and possibly lowering your interest rate. Consolidation may also reduce your monthly payment if extended over a longer term, and it can save money if you pay off higher-interest debt with a lower-interest loan.

Another option is using a balance transfer, where you move high-interest debt to a lower-interest credit line. However, some cards charge fees or offer a limited-time rate, so carefully consider if it’s right for you. Be cautious not to accumulate new debt on the cards/lines you’ve consolidated!