Along with the decorations, cookies and family fun, the holidays also often come with a sizeable chunk of debt. In fact, 42% of Americans expect to have about $500 in holiday debt. If you find yourself a bit buried in debt, WWFCU has some great tips to help dig you out.
Evaluate
As much as it can hurt to actually look at what you owe, it’s the best place to start. If you find yourself with a few credit card bills, take a look at their balances and interest rates. Then, you can tackle the bills in one of two ways. One, you can start with paying off the highest rate first to save you money. Two, you can pay off the lowest balance first to build up some debt-paying momentum. Nothing like paying off one bill to make you want to get all your bills paid off.
Consolidate
If you have a few credit cards with balances, take a look online and see if any of them allow you to transfer your balances. That way, you’ll have fewer bills to deal with on a monthly basis. Just make sure the credit card you transfer everything to has a lower interest rate than the others.
Shop Around
Speaking of lower interest rates … Many credit cards come at a price – high interest rates. If this describes your cards, it may be time to shop for a new one. The best place to start is a credit union like WWFCU, we statistically have lower credit card interest rates than the average bank.
Earn
A simple way to pay your debt off sooner is to start earning extra income. See if you can put in extra hours at work, hold a garage sale or sell some items online. If you have a special skill or talent, you may be able to pick up some additional work on the side on a per project or consulting basis as well.
Schedule
Thanks to company autopay options or Bill Pay with your WWFCU Online Banking, you can schedule your monthly payments. That way, you take the stress out of bill paying and reduce the risk you may miss a payment. The sooner – and easier – you can pay off your debt, the better!
You can always speak to a WWFCU Member Service Representative for help with our credit cards or online banking. Just stop by our branch or call (734) 721-5700.
