How to Pay Down Debt

Are you ready to get out from under debt once and for all? Some debt (like a home mortgage) will improve your credit rating, say consumer credit counselors. But not overcharged credit cards and high-interest loans. It's time to create an action plan to eat away at those balances and get out of debt.

There are a few simple steps to successful debt management.

1. Make a budget. Adjust expenses to find extra money each month for credit card payments-even $50 will help. If you can't find ways to save money, consult with a trained financial expert like those at ClearPoint.
2. Choose the payoff debt. Debt management experts advise paying off higher-interest balances first. Also pay off smaller balances, which will quickly free up money to put toward larger balances.
3. Ask for lower rates. Most credit card companies will lower interest rates when asked. Lower rates mean your money pays more of the balance instead of interest.
4. Send extra payments. Make your minimum payments each month, but send that extra amount to the chosen payoff account. As soon as that debt is paid off, put its payment and the extra toward the next account.
5. Stick to the plan. It can be tempting to use the cards when balances are lowered, or spend the extra income. But this will only put you behind on your debt management goal of being debt-free.

The advisors at ClearPoint Financial Solutions focus on helping consumers create personalized budgets in order to better manage debt. ClearPoint's consumer credit counselors are certified by the National Foundation for Credit Counseling, and can analyze your financial situation. If your debt burden has become stressful and overwhelming, your counselor can create an individual debt management program and arrange payoff terms with your creditors.

Get started creating your budget and debt management plan. Today can be the first day toward a debt-free future.