Is mounting debt causing you stress? If so, you’re not alone. Average consumer debt is on the rise in the United States.
Consider the money management strategies below to control your debt, along with tips for taking advantage of new tools to reduce your spending.
– Get a complete picture. Do a 360-degree assessment of how much you owe, tallying up any loans, credit cards or installment debts you might have. As part of this assessment, you can check your Experian credit report for free at www.Experian.com.
– Review your budget. Doing so will help you know how much money you can allocate to paying off debt and help you avoid impulse spending or indulging in extras that might set you back financially.
– Choose a repayment strategy. Find a repayment strategy that works best for you and stick to it. This could mean prioritizing debt with the highest interest rate, the debt with the smallest balance, or the debt with the highest credit utilization. However you go about it, the important thing is to keep tabs on your progress and stay the course until your debt is paid off.
– Keep it up. Continue to practice good financial habits, like regularly checking your credit report and credit score, spending within your means, and paying your bills on time to avoid taking on additional debt.
– Use tech tools. Easy tools can help you cut out unnecessary spending. For example, the Experian app has a subscription cancellation feature that does the work of tracking and cancelling subscriptions for you. Experian data shows that consumers have about four subscriptions on average, totaling almost $1,000 per year in potentially unused expenses.
With over 200 subscriptions eligible for cancellation through the app in categories like streaming services, meal kits and entertainment, that could spell big savings.
Reigning in spending and getting a handle on debt don’t have to be insurmountable goals. By leaning on available resources, you can become the financial champion of your future.
For more information go to experian.com/relief or forgiveco.com.
Source: StatePoint