Don’t Sweep Your Debt Under the Rug

Don’t Sweep Your Debt Under the Rug

For many Americans, debt is a regular part of life. But, just because it’s your current normal, doesn’t mean it has to be your forever normal. At Heights Finance, we know that life happens and as a result, so does debt. The question is, how do you flip the switch and start attacking debt instead of accumulating it? The first step you need to take is being honest with yourself about your current financial situation.

Ignorance is Not Bliss

Many consider money to be a “taboo” topic. Unfortunately, this lack of openness often results in people having the wrong idea when it comes to credit cards, debt and overall financial health. For example, it’s not uncommon for Americans to believe that “once you’re in debt, you can never come out of it,” “paying off debt is pointless because it will never disappear” or “it’s normal to be drowning in debt.” These statements are completely untrue and are more a product of stagnation and despair than progression and active solutions. Not only is getting out of debt “doable,” but essential to your future.

Address the Elephant in the Room

There’s no use in being ashamed of your situation. Almost everybody experiences debt in one way or another. Instead of letting your current circumstance drag you down, take an honest look at where you stand. Many who find themselves stuck in debt are not willing to make the necessary changes to get themselves out. Now is the perfect time to compare your income vs your lifestyle and see where the discrepancies lie. Make note of how much money you have coming in and how much you have going out. Maybe you’re buying unnecessary items during your grocery trips, spending too much time at the bar or making too many coffee stops? These expenses may seem small in the moment but are steadily adding to a mountain of trouble.

Don’t Let Your Pile Grow Into a Mountain

Imagine your debt as piles of dirty clothes that need to be washed and put away. If you ignore the piles long enough, they will only grow. If you dedicate time and effort to organizing the piles, the situation will seem a lot more manageable. At the very least, you’ll know exactly what you’re dealing with and the steps you need to take to diminish the mess. Be sure to take the time to sit down with your debt. Once you truly understand the scope of the situation, it will make it that much easier to evaluate the options you have for progress.

Never Miss a Payment

Your first order of business while battling debt should be to make every monthly payment. This strict parameter will help to structure both your income and savings goals. Missing payments is also an easy way to compound your debt. So, by failing to make this essential change, you will actually put yourself in a worse position. Instead of relying on your memory of future payment dates, we recommend scheduling your payments online for the same date every month. This will develop a rhythm, routine and an unbreakable personal expectation to help you fulfill important changes to your daily habits.

Alway Pay the Balance and Not the Minimum

Coming face to face with your debt, making a plan and beginning consistent monthly payments are great first steps. However, the knockout blows will come when you pay off the “balance” rather than the “minimum.” Many credit card companies offer you the opportunity to make small monthly payments called minimums. Unfortunately, making the minimum payment will only extend your debt for years to come. By choosing to pay your monthly balance, you will stop the accumulation of debt and actually start to pay it down.

Consolidate Your Debt

If you have multiple sources of debt and the prospect of paying it off seems too overwhelming, come see us. Heights Finance specializes in Debt Consolidation loans. Instead of trying to manage multiple payments with different interest rates, you could be eligible for a single loan that pays off all your different sources. Then, you’ll only have one source of debt through Heights Finance with a fixed interest rate. This will allow you to organize your existing debt into a single monthly payment.

We Are Here to Help!

We know that making these tough decisions and lifestyle changes can be daunting. But, Heights Finance is here for you. Our dedicated team members are only a phone call away. So, if you’re feeling stuck or overwhelmed, give us a ring or come see us in person. We may have a solution to help get you back on your feet. Contact us today to see how we can lend a hand to help you put your best financial foot forward.