It’s no secret. Americans really know how to get into debt. Credit cards, student loans, mortgages, car loans, personal loans: Most Americans have a combination of these sources of debt. And despite their best intentions, Americans are digging themselves deeper into a hole each year. Despite recognizing that debt is dangerous waters, Americans are jumping in with both feet and struggling to stay afloat.
On a more personal level, the numbers are even more eye-opening. The average family’s credit card debt was $8,500 in Oct. 2019. That’s $1.088 trillion in total credit card debt divided by 128 million U.S. households.
However, fewer Americans understand how to get out of debt. It starts with willpower. But there are also proven financial strategies that can really pay off. Fortunately, your local credit union, like TPFCU has many products and services that can steer you in the right direction. These include everything from low-interest debt consolidation loans to attractive credit card options to consumer counseling services.
But first you need to understand your debt. First and foremost, take some time to review your situation and get a strong handle on your debt. Focus on paying off the loans with the highest interest rates first. These are usually credit cards, but student loans can be a scary word for most but repayment is obtainable.
Pay more than the minimum. It’s hard sometimes to pay more, but if you put a plan budget together and have the numbers in front of you, it will help and show a clear picture what you can do.
Start setting goals for your financial success. Use those goals to help your spending decisions. Get in the habit of asking yourself do I need it, or do I want it. Once you get in this habit you will be surprised how much money you actually have.
You have to find out what works for you and what is your goal in the end. But remember, the staff at Texas People Federal Credit Union are always here to help you and our doors are open.