If one of your New Year’s resolutions is to have control of your finances and be debt-free in 2024, we can help! We want you to achieve financial success! We know what kind of burden debt causes, so want to help you feel confident enough to get yourself in a better financial position!
The first step in paying off debt is understanding your financial situation. This includes everything from your income, expenses, and debts. By doing so you can find the reasoning behind your debt, such as you’re spending more than what you make, or you can identify areas where you can cut back on spending and use it towards paying off more debt.
Next, you will need to figure out the best way to pay off debt. You could use the snowball method or the avalanche method. The snowball method is where you pay off the smallest amount of debt first, then continuously move on to the next smallest debt, and so on. This method creates motivation and a psychological boost as it helps you feel successful as you pay off debt. The avalanche method is when you pay off the debt with the highest interest rates first, then continue with the next highest interest rate debt. This method helps you save more money on interest over time.
If you feel like you could use some help or if you feel like you have a special case, then it would be wise to seek out a financial advisor. They can provide personalized advice and help you create a financial portfolio based on your specific financial situation. As members of Bowater Credit Union, you have access to Bowater Wealth Management! Bowater can provide you access to a financial advisor we trust to put your goals first! Not only can our advisors help with financial planning but also investment management, and insurance, retirement, and education planning. If you would like to learn more or contact one of our trusted advisors, click here!
Sticking to any goal requires commitment, discipline, and a well-constructed plan. By building a budget, attacking debt, and staying focused, you can take control of your finances! A helpful tip is to track your progress. This provides a way for you to see how far you’ve come and keep you motivated. We believe in you and that all this extra work will be more than worth it!