Debt is something that happens to most people in their lifetimes. If you’re dealing with debt, it doesn’t mean that you should be ashamed of the way you’ve managed your money. It simply means that you need to make a plan to tackle your outstanding obligations so you can get back on track financially. Having the backing of a reliable bank that can help you navigate the process of dealing with your debt is a good first step. These steps will also help you get your debt under control.
Know Where You Stand
You can’t start to manage your debt until you know how much you have. Although it can be tempting to leave envelopes and emails unopened and to ignore the phone, doing so will only exacerbate your situation. Gather all of your outstanding debts and add them up so that you know exactly how much you owe and who you owe it to. This will allow you to make a plan to successfully manage your repayments.
Prioritize the Right Debts
Not all debt is created equal, so it’s important to assign priorities to your debts. Any debt that is secured by a piece of property, such as mortgage, should be at the top of your repayment list, unless you are prepared to lose your collateral. High-interest debt should also be repaid first, since it is the most expensive kind of debt. Prioritizing your debt doesn’t mean that you ignore making payments on other accounts. It simply means targeting specific accounts for larger payments in a methodical way.
Avoid New Debts
As you pay off debts, it can be tempting to use your credit cards again or apply for new loans. Doing so while you’re still managing your debt repayment will set you back quickly. Focus on staying within your budget so you can experience the relief of being debt-free.
Alpine Bank in Steamboat Springs has been serving the Western Slope of Colorado for more than 38 years and is committed to developing strong, personal relationships with customers. Find out how Alpine Bank can help you reach your financial goals by calling (970) 871-1901.