Debt Management Tips to Take Control

Life’s unpredictable nature can make it easy to fall into debt. Use these tips to start managing your debt today.

Types of Debt

Debt falls into two main categories:

Good Debt: Investments that increase in value over time, like student loans or mortgages.
Bad Debt: Debt for things that lose value, like credit cards for non-essential purchases or payday loans.

Even “good” debt can be harmful if you’re unable to make payments.

Here are some ways to regain control:

Debt Snowball Method: Start by paying off the smallest debt first, then move on to the next.
Debt Avalanche Method: Pay off the highest interest rate debt first.
Debt Management Plan: Work with a credit counselor to negotiate lower rates or fees and consolidate your debts into one payment.
Debt Consolidation: Combine debts into one loan, ideally with a lower interest rate, but be cautious about the long-term cost.

The Banzai Get Out of Debt Coach can help you create a personalized plan.

Reduce Expenses: Cut back on non-essential spending to stop adding to your debt.
Pay More Than the Minimum: A little extra can go a long way in reducing your debt faster.
Negotiate With Creditors: Contact creditors to adjust your payment terms if you’re struggling.
Debt Counseling: A non-profit service can help you create a manageable repayment plan.

Need help with your debt management? Reach out to a Croghan advisor for expert advice.