4 Ways to Reduce Your Debt Quickly in 2015

posted 1/9/2015 in Banking

Now that the holidays are almost over, many of us are evaluating the damage holiday spending had on our budgets. If your bills are making you feel anxious, the most likely culprit is high-interest credit card debt, but you may also have a monthly mortgage or other loan payments to take care of as well.

Try these tips to reduce and eliminate your debt as soon as possible in the New Year!

Review Your Budget

The first step in any debt reduction plan is to look over your budget. Why? It allows you to see how much you can put toward your debt each month and where you may be able to cut to increase the amount.

Make the Cuts

Once you’ve identified where you can make cuts in your budget, put them into action. Need help staying consistent? Try the if-then approach of setting goals Stephen J. Meyer talks about in this article from Forbes.com.

Get Rid of Things You Don’t Need

If you have a lot of stuff around the house -- chances are good most of us do -- try selling it. You can then use the profits to make an extra payment on your debt.

Make Additional Payments When You Can

Not only does this decrease your principal balance, it also helps cut costly interest over the life of your loan.

No one likes owing other people. It’s stressful and negatively impacts our finances, life and even our health. Using these tips to reduce and eliminate your debt in 2015 is a great way to start off the New Year. 

Lincoln Savings Bank, Member FDIC

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