Make your money move the way YOU want it to. Did you know that 8 out of 10 Americans struggle with consumer debt averaging around $38,000? Having some form of debt is inevitable. Whether it is financing a car, obtaining a loan to go to school, or mortgaging a home, owing debt may seem like the way of life. Although it may be, there are still smart ways to manage your debt and steps to take to help you combat and take control of your finances.
Step 1: Analyze your Debt
Figure out and correct the reasons why you are in debt. If you were spending too much, make changes that will not put you further in debt. Gather all of your financial data. Request a complimentary credit report at www.annualcreditreport.com for a full and accurate list of your account history and credit. Determine where any over or unnecessary spending has occurred and take steps to cut it.
Step 2: Stick to a Budget
Find a budget that is right for you. Once your budget is created, be sure to consistently track your progress to set you up for success.
There are many budgets available. Find one that fits your needs and feels like it will help you reach your financial goals. One method called the 50/30/20 Budget is explained by Nerdwallet.com as a way to wipe out debt quickly. The 50/30/20 Budget keeps essential expenses like housing, to 50% of your income. It allocates 30% for your wants and 20% is reserved for savings and debt pay-down.
Step 3: Move your Money
The average credit card interest rate is 18.26%,which can equate to hundreds of dollars in interest spent each month by consumers. It is best to avoid carrying a balance from month to month with a credit card if the APR is anywhere close to the current average.
Move your money and take advantage of lower interest rates. This will help you save hundreds on interest and consolidate multiple cards into one. With Dover Federal’s Advantage or Cash Back Mastercard, Check your Rate with No Credit Impact. See how much you are prequalified for and move your money to a card that will help you reach your budget goals. With 0% for 12 months and a competitive fixed rate as low as 5.99%, the Advantage or Cash Back Mastercard® will help you pay down debt at the pace you need without penalties or hidden fees.
Don’t Forget Your Resources
Vehicle, Loan & Debt, and Mortgage Calculators
Educate yourself as you strive towards debt freedom. Prior to making large purchases, use Dover Federal’s built-in calculators to help you find out how much you will need before you take that next step.
Credit Score Analysis
A higher credit score gives you more negotiating power when it comes to your financial needs. From higher limits to better rates, high credit scores just aren’t for bragging rights. Dover Federal offers a complimentary one-on-one review and analysis of your credit report to help you understand what is influencing your credit score, while also identifying areas of opportunity to improve your credit score, lower loan payments, and eliminate high-interest debt.
As you take steps that will bring you closer to financial freedom, remember your goals. Increasing your credit score will allow you to qualify for lower-interest loans and help push you towards a debt-free life. Adjusting your spending habits will help you put more money aside for those significant purchases you have been wanting to make. Lastly, becoming more financially healthy will help you to be more confident and stress-free when it comes to managing your money. In all, make your money move the way you want it to