Four Strategies to Save Money
Control your finances before they control you! These strategies can help you figure out how to best manage your finances. These strategies can be applied to all kinds of debit – credit card payments, student loans, car loans, medical bills, etc.
Pay more than the minimum
This is a simple and effective strategy. Pay off balances by paying more than the required minimum amount. Making extra payments will allow you to pay off your loans faster and will also help you save on interest. Use this method to stay ahead.
The Avalanche Method
Identify your highest-interest rate balance and focus on paying that off first, while sticking to the minimum required payments on all your other debts. When your highest-interest rate loan is paid off, move to the next highest-interest rate loan. The faster you pay off the highest-interest rate payments, the more money you will typically save in the long term.
The Snowball Method
If you do not want your bills to pile up or snowball, try out the “snowball” strategy. Begin by paying off your smallest bills and working your way up. Getting the smallest payments out of the way first is a great way to build momentum on paying back balances and a confidence boost to keep yourself motivated! After you pay off the smaller balances owed, you will have the time and motivation to tackle the larger ones. Always make sure you are making the minimum required payments on all debts.
If you feel completely overwhelmed, consider consolidating what you owe into a debt consolidation loan. You can pay off multiple balances through a single consolidated loan. This can assist with finance management and help decrease stress.
If your loans or debt are causing you undue stress, it is always best practice to consult with an accountant to help you chose the best strategy for your unique situation.
Want to learn more? Contact one of our Bank associates or visit one of our branches to determine what strategy would work best for you. If you are looking for lending options, speak with the team that always puts you first.