Start the New Year Right by Consolidating your Debt

erasing debt

Paying off debt is stressful! If you’re making multiple payments for credit cards, loans or other obligations each month, it may be time to explore combining those bills into one simple loan.

That’s where Baltimore County Employees Federal Credit Union comes in. We have millions to lend!

We have several loan options to combine your balances, including:

Consolidating your debt into one loan can simplify matters— and with fewer bills to pay each month you can concentrate on paying down your debt faster and start the New Year on a better financial path!

Getting Started
The best place to start on your quest to fight debt is to keep track of where your money is going. If you haven’t already, start a budget. List total income, as well as fixed expenses, such as rent, mortgage payments, utilities, and insurance. Next, detail your variable expenses, such as transportation, groceries, clothing, and entertainment. Once you write these expenses down, you’ll quickly see where your money is being spent. Part of the funds that remain each month should be saved, and the rest should go towards paying down your debts.

Consolidating Your Debts
After you’ve made your budget, the next step is to consolidate your debts, so they can be repaid simultaneously. Instead of tackling many different bills, with differing amounts and interest rates, consolidate them into one loan. This way, your interest rate and monthly payment are consistent (and often lower) and monthly budgeting will be more straightforward. A good option could be a low-interest credit card or debit consolidation loan.

Stick to Your Plan
Once you have developed stronger financial habits and have consolidated your debts into one easy-to-manage monthly payment, resist the urge to use additional credit. Destroy extra credit cards so you won’t be tempted to use them. The best way to get out of debt is to keep from adding to it. Follow this debt-defeating strategy and start your journey towards financial freedom!