Tips for Managing Debt

Managing and paying off debt can feel overwhelming. That's why creating a plan to attack your balances is important. Below are steps you can start taking today that will help you tackle debt and set yourself up for financial wellness.

Build An Emergency Fund

Having money set aside in a savings account dedicated to unexpected expenses can help avoid the need to use credit during an emergency.

Take On New Debt Only When Necessary

Having multiple accounts with balances can make it more difficult to manage debt and can lower your credit score.

Regularly Monitor Your Credit

Reviewing credit reports consistently helps you make sure they are accurate and can show you areas in which you can improve. Visit annualcreditreport.com to get your free credit report

Pay On Time

Your payment history makes up 35% of your credit score, so pay any missed payments as soon as possible and set reminders so you don't miss future payments. Credit reports track if you are 30, 60, or 90 days late on payments

Pay More Than The Minimum

Paying more than the minimum will help you pay off your debt faster, save on interest charges, and can improve your credit score.

Know Your Limits

Maxing out your credit limits can make it hard to get caught back up and can make your credit score go down. Aim to keep your balance under 30% of your limit.

Think Before Closing Accounts

Closing credit card accounts may lower your available credit and could hurt your credit score in the short term. Consider keeping accounts open if they have a good payment history and a low or zero balance.