Don’t add to your debt! This is why having a budget and an emergency fund are so important. A good rule of thumb is to keep all debt-related payments under 40% (and work toward under 20%) of your pre-tax income.
Pro tip: Make sure you have at least $1,000 in an emergency savings account to help you stay away from credit cards when unexpected expenses pop up.
Pay down debt faster! If there’s any potential to consolidate debt or lower the average interest rate of your credit cards or loans, go for it. Many people with student loan debt look to consolidate their loans for a more manageable payment.
Pro tip: If student loans are eating up your monthly budget, explore refinancing options to lower your rate.
What’s good debt advice? Pay off debt with the highest interest rates first. If things feel overwhelming, look into the debt snowball method to help you gain momentum.
Pro tip: Some people find debt counseling helpful. If you’re having trouble finding extra money to pay off debt, we can help you come up with a spending plan.