Hello everyone! My name is Brenda Butnick and I’m a Financial Coach at Jewish Family Service in Dallas. I work one-on-one with clients to help them achieve financial self-sufficiency.
We discussed the third step on Best Practices to Get Out of Debt in my last Blog, and today we will discuss the 4th Step.
Getting out of debt involves a multi-step process. Today we will discuss Taking Action and Staying Consistent.
Here is the Final step to take:
Step 4:
Take Action and Stay Consistent
- Pay more than the minimum. Paying only the minimum on high-interest debt can keep you in debt for years. Every extra dollar you pay reduces the principal, leading to less interest paid over time.
- Avoid new debt. While focusing on paying off old debt, be careful not to take on new debt. Consider using cash or a debit card instead of credit cards for daily purchases.
- Track your progress. Use a spreadsheet or an app to monitor your debt reduction. Watching your balances shrink can provide a powerful motivational boost.
We will discuss Credit Card Billing Errors in my next post on Friday, January 16th.
That’s all for your Financial Fitness today!
Until next time – take care and stay financially fit!
