SEATTLE — After more than two years of living with the pandemic, there has been a lot of economic uncertainty.
Paying down debt is now a high priority for a lot of people, so KIRO 7 spoke with a lead financial educator at BECU, Stacey Black.
Black said the first step is to stay positive and set financial goals with time frames to keep yourself on track.
Second: avoid scams. There are currently a lot of scams circulating with links to get to supposed debt payment services.
Third: avoid debt consolidation loans. Black said instead, address the behavior that got you into debt in the first place.
Black suggests the debt snowball method. Make minimum payments on all debt and use any extra funds to pay off the debt with the lowest balance first.
Once that’s paid off, focus on the next-smallest debt. This can help build momentum in eliminating debt.
There’s also the avalanche method, which recommends focusing on the debt with the highest interest rate first. It can help you save more money over time.
Debt management companies and nonprofits can also help you to manage your debt and negotiate with credit companies.
GreenPath offers free debt and credit counseling.
©2022 Cox Media Group