- Pay down debt
- Refinance loans for better rates/lower payments
- Bundle insurance with one company
- Shop around for insurance and credit (annually)
- Use credit cards wisely
- Only charge what you can pay in full
- Eliminate late payment fees; pay on time
- Understand terms and conditions of each card
Pay Down Debt:
There are a couple of methods to help get debt paid down quickly. Which way you chose may depend on how much you owe. You may even end up combining the methods.
Power Paydown: This pays off debt in order of interest rate. The higher rate debt gets paid off quicker while you make minimum payments on all others.
Snowball Paydown: This pays off debt in order of balances. The lower balance debt gets paid offer quicker while you make minimum payments on all others.
- Once you payoff a debt, take that payment and add it to the minimum payment on the next lowest balance.
- Seeing debts get paid off is motivating- Keep up the progress!
Contact a Loan Officer at MCCU to ‘run the numbers’ to determine whether a debt consolidation loan, refinancing a mortgage or even an auto loan makes sense for you.