Between interest charges, multiple due dates, and everyday expenses that keep coming, balances can be surprisingly hard to bring down. The good news is you don’t need a complicated financial strategy to start making progress, and Wauna is here to help along the way.
Here are 4 practical ways to show credit card debt the door when its getting a little too comfortable.
1. Know what you owe.
Before you can make a plan, you need the full picture.
Make a list of each credit card along with its current balance, interest rate, and minimum monthly payment. Seeing everything together can make it easier to understand where your money is going and which balances are costing you the most.
Wauna tip: You don’t have to build a spreadsheet from scratch. Wauna’s free Money Management tool through online banking lets members view Wauna accounts and accounts from other financial institutions in one place. You can also categorize spending, create a budget, track goals, and see spending patterns.
2. Tackle high-interest debt first.
Once you know what you owe, take a look at those interest rates.
Continue making at least the minimum payment on each card, but consider putting any extra money toward the card with the highest interest rate first. Once that balance is paid off, take the money you were putting toward it and move on to the card with the next-highest rate.
Why start there? The higher the interest rate, the more that balance can cost you over time. Reducing your highest-interest debt first can help you spend less on interest and put more of your money toward actually eliminating debt.
3. Find a little extra room in your budget.
You don't necessarily need to completely overhaul your lifestyle to find more money for debt payments.
Take a look at your spending and identify one or two expenses you could temporarily reduce. Maybe it's eating out one less time each week, cutting a subscription you barely use, or setting a smaller entertainment budget for a few months. All that excess money can be put directly toward your credit card balance.
Wauna tip: This is another place where Wauna’s Money Management tool can help by categorizing expenses and showing spending patterns.
4. Consider whether consolidation makes sense.
If you're managing several high-interest balances, paying each one separately isn't your only option.
Debt consolidation combines multiple debts into one. Depending on the product, rate, and your individual financial situation, that could give you fewer payments to manage and potentially reduce what you're paying in interest.
Wauna has several options that may be worth exploring:
Personal loans: Wauna’s Lifestyle Loans can be used to consolidate debt and come with predictable monthly repayments.
Home equity: For homeowners who qualify, a Wauna Home Equity Loan can also be used for debt consolidation and offers fixed monthly payments.
Credit card balance transfers: Wauna’s Visa credit cards offer no-fee balance transfers, providing another potential option for moving existing credit card balances.
Consolidation isn't automatically the right answer for everyone. Compare the interest rate, fees, repayment period, and total cost before deciding whether moving your debt will actually improve your situation.
Need a little help making a plan?
Sometimes the hardest part of dealing with debt is knowing where to start.
Wauna members have access to financial education resources, including the BALANCE Financial Fitness Program. BALANCE offers financial counseling that can include reviewing your income, expenses, and debt, discussing your options, and developing an action plan.
Wauna also offers Zogo, a free financial education resource with short, interactive lessons covering topics including budgeting, saving, and credit.
Ready to show your debt the door?
Getting your finances moving in the right direction doesn't have to mean figuring everything out by yourself. Contact the team at Wauna Credit Union to discuss your options.