Seventh Month - Post Purchase
Tackling Your Credit Card Debt!
Now that you’ve settled in and are used to your monthly mortgage payments, its time to begin setting financial goals, paying down consumer debt, growing your savings, and managing your household’s needs.
Now you’re ready to tackle credit card debt and to be certain this debt won’t threaten long-term goals or credit score.
Here are a few tips to help manage your credit card debt.
Set up automatic payments on your credit card. Just like you enrolled in ACH for your mortgage, setting up automatic minimum payments on your credit card can ensure that even if you do not pay off the whole debt, at least you are not losing points for missing a payment.
Pay off new charges in full each month so that your debt levels don’t grow.
Get off the hamster wheel and make a plan to eliminate your credit card debt.Identify one debt – either the lowest balance or the highest interest rate – and make payments greater than the minimum amount due.Once you get that debt paid off, apply those payments to the next debt and slowly, but surely crush your debts!
Use one-time funds like a tax refund, gift or a bonus from work to make rapid progress in paying off a debt.
Being debt-free improves your credit score, opens up more opportunities to pursue your dreams and reduces financial stress. That’s why we are here to answer any questions that you may have. Feel free to reach out anytime to discuss your unique situation.