Share  |  Print
Money Minute
Quick Tips
Tackling Debt
Money Minute
Are you ready to take action and really tackle your debt? Here are some tips.
 

It’s one thing to think conceptually about debt, but here are some tips to help when you’re ready to take action and really tackle your debt.

Know your number.
Before you can reduce your debt, you need to know how much you have. Create a list of all of your debt so you can track each and every one. Consider posting that list in a prominent place where you’ll see it often (like your refrigerator door). The idea is to own up to what you owe.

Create your plan of attack.
Start by figuring out your budget. This means being brutally honest with expenses that you need (like housing and food) vs. things you really want (like cable or going out). Once you have your expenses prioritized, you can then decide how to tackle your debt. One idea is to start with paying down debt with the highest interest rate first; then work your way down to the debt with the next highest interest rate, and so forth. While you do this, remember to continue paying the minimum on all your debt.

Use cash instead of credit.
For example, if you have a budget of $50 for lunch during your work week, place $50 worth of cash in an envelope. Once you use it up, you’re done. You’ll be amazed at how hard it is to spend only what’s in that envelope, but you’ll know 100% that you’re sticking to your budget.

Eliminating your debt won’t be fast or easy, but if you track your results, you’ll find that slowly chipping away at every little bit counts. And over time, that’s how you make real progress.




The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.

 
Past performance does not guarantee future results. © Ariel Investments, LLC. This website and all of its content is for informational and educational purposes only and should not be considered to be investment advice or a recommendation to buy or sell any particular security. The mutual funds offered by Ariel Investment Trust are distributed by Ariel Distributors, LLC, a wholly-owned subsidiary of Ariel Investments, LLC. Use of this website is subject to our Terms & Conditions. The Ariel mutual funds referred to in this site may be offered only to persons in the United States. This web site should not be considered a solicitation or offering of any investment products, funds or services to ineligible investors, investors for whom such products, funds or services are not suitable, or investors outside the United States.

Check the background of this firm on FINRA's BrokerCheck
Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation