From car loans to student loans, credit card balances and other revolving debt, U.S. consumer debt is higher today than ever before. Indeed, that figure now exceeds $4 trillion for the first time, according to CNBC.com 2019 estimates. To reduce and eliminate your own debt, consider:
• Review where your money is being spent. Create a budget for monthly expenses and stick to it.
• Get inspired by expert-touted financial strategies and pick one to follow. One popular example is the debt snowball plan, whereby you pay off bills smallest to largest, no matter the interest rates. Or, use the debt
avalanche method, paying off highest interest rate debts first, or balancing
transfers to credit cards with the lowest interest rate.
• Without an emergency fund, unexpected expenses can quickly become a crisis, throwing you off track. Work toward growing a savings fund, even if it’s just $500 to $1,000.
• If a retirement savings program is offered by your employer,
participate. . Many employers offer matching programs, which is essentially free money. Don’t leave it on the table!
“Those high-interest credit cards, payday loans, pawn, title pawn and rent-to-own contracts might all look like lifelines when you’re faced with a necessary expense you can’t immediately afford, but they can be traps leading to compounding interest rates and hidden fees,” says Richard Carrano, Purchasing Power CEO.