Spendy holiday season? Try these methods to pay off debt
(LEX 18) — Households across the country are feeling financial pressure after holiday spending reached a new record this year, according to the National Retail Federation.
As the cost of living also rises, it’s not uncommon to have credit card debt. But maybe one of your New Year’s resolutions is paying it off!
Dale Morgan, the CEO of Foundation 47, says it’s never too late to become financially literate and get out of debt.
“Debt can get you down,” he said. “Financial stress and anxiety can put you in a very bad place.”
He knows that first-hand. He paid off his own debt successfully and now helps others figure out their own game plan.
“It starts with that budget and going through the budget line item by line item and figuring out ways that I can cut back,” he said.
Morgan says once you’ve figured out what you’re spending, find areas where you can cut back. Examples include eating out less and quitting some streaming services.
Then, work on paying off debt. He recommends the “debt stacking” method (here is a how-to) and making bi-weekly payments instead of monthly.
“If you can break that debt up into bi-weekly payments, essentially over the course of a year, you’ll make an additional payment on that debt, which will in turn help you pay it off quicker,” he explained.
Morgan says some people might need to consider getting a second job, even temporarily, while they knock down their debt.