Four Ways To Help You Get Out of Debt in 2021

Dealing with debt can be overwhelming and straining on your finances. Is it your goal to be debt free in 2021? Take a look at our top tips!
  1. Set a Firm Budget 

    First and foremost, evaluate your income, debt and expenses. Then, set a firm budget using those numbers. This is a great way to figure out exactly how you’re currently spending your money and where you are being frivolous. Once you’ve crunched the numbers, you can begin to make adjustments. If your income doesn’t cover your expenses, it may be time to consider asking for a raise, taking a second job, or adjusting your lifestyle to focus on paying off debt.

  2. Use the “Debt Snowball” Method 

    The debt snowball method presented by money management expert, Dave Ramsey, provides a plan to pay off debts in order of smallest to largest. Then, as debts are paid, you “roll” your money into the next smallest balance. Here’s Ramsey’s process:

  • Step 1: List your debts from smallest to largest.

  • Step 2: Make minimum payments on all your debts except the smallest.

  • Step 3: Pay as much as possible on your smallest debt.

  • Step 4: Repeat until each debt is paid in full.

  1. Streamline & Simplify

    Create an “automated budget” by setting up auto-payments for each paycheck to cover your bills and add to your savings account. This helps avoid spending income on non-essentials because you’ve spent the money before it even gets into your “spending” account. You can also simplify your lifestyle by cutting out unnecessary spending and putting daily practices into place, like making your coffee at home or packing your lunch for work. While this step can be one the hardest of all – we all love our Starbucks – remember that this is only a temporary adjustment that will help you achieve financial freedom in the future.

  2. Consider a Refi

    If you’re a homeowner, there’s a chance you’re paying a higher interest rate than today’s rates. By refinancing to lower your interest rate, you can save money on your monthly mortgage payments which helps free up cash to help pay down debt. Or, depending on how much equity you have, you could even do a cash-out refinance to pay off credit card debt, car loans, personal loans, school loans, etc.

To learn how the right mortgage can help you reduce debt, click here to contact your local Inlanta officer today!

Helpful Hacks to Stretch Your Holiday Budget

While the holiday season is a joyous time of year, it can also be a stressful time both emotionally and financially. According to a study completed by the American Research Group, Inc., the average American is expected to spend over $900 on gifts this holiday season alone. If you don’t have $900 already set aside for gifts this season, you’re not alone. That’s why we’re bringing you our top tips to stretch your holiday budget below!

  1. Make a Plan

    First things first – sit down and take a hard look at your finances, how many people you’d like to purchase gifts for, and what your budget will allow. Making and pricing out a list will also help you to stay on track and on budget.

  2. Do your Research

    Have your eye on a specific gift for someone? Don’t jump on the first deal that comes your way. Try comparison shopping online or download a digital coupon app like RetailMeNot for deals and discount codes.

  3. Sign up for Email Alerts

    If you’ve got several favorite stores, make sure you sign up for email alerts to receive news and information on sales and discount offers.

  4. Pay with Cash

    While it’s tempting to charge up your credit card for gifts you think your family and friends will really love, setting a strict budget and taking out the exact amount of cash you plan to spend will help you to avoid that post-holiday debt.

  5. Take Advantage of Credit Promotions

    While we do encourage you to use cash to stay on budget, it may be smart to check into your credit card company incentives and promotions to see if they offer cash rewards or points that will help you earn more. If you do decide to go this route, please remember to use credit responsibly

  6. DIY

    It’s truly the thought that counts, so why not channel your creativity to make your own, personalized gifts for your loved ones? With the robust internet today, you should have no problem finding a number of ideas. Try checking out Pinterest to get you started.

  7. Set a Limit

    There’s no harm in proposing a monetary limit with family and friends to help you stretch your budget on gifts this year. It is likely that they are in the same boat as you are and will welcome the gift limit idea.

So, leave the stress behind this season and use these handy tips to help you stretch your holiday budget. As always, if there’s anything we can do to help, contact us today!