There are a lot of books, television shows, radio programs and magazine articles all dedicated to helping the average consumer learn how to be debt-free. One of the best tools that you can use to achieve your goals is to take advantage of your credit union membership at St Anne Credit Union in New Bedford. The first thing that you need to know is that your New Bedford Share savings is the key to your freedom from debt. Start using your credit union savings and other financial opportunities in ways that will benefit you the most.
From your basic savings account to specific types of savings, such as a Christmas Club savings account or money market account, St Anne Credit Union in New Bedford can really help you to save and grow your money. Through tips for better checking account management to ideas that will help you to put away more money every month, you can learn how to be debt-free and use the money that you save on interest, fees and other debt-related costs, to increase your savings. Your credit union account representative can help to get you started.
How to Pay Off Debt Quickly and Build Savings
The first thing you need to do is to make paying off your debt a priority. It needs to be more important than that weekend trip you have been wanting to make or that big purchase you have been considering. Push all of that aside and focus on your debt. You don’t need to give up everything fun, you just need to learn how to create a budget for it – and stick with it.
Step One – Create a List of Debt
This is not fun, but it is necessary. Create a list of all your debts, and list them from the smallest bill to the highest balance due. Then, create another list, where your debts are listed according to the highest interest rate down to the lowest interest rate. This is key. The bills that have the highest interest rates are the ones you want to pay off first – even if they are technically smaller bills than the others. That high interest rate will cost you the most money in additional fees each month, so it’s a good idea to get rid of it by making payments through your New Bedford checking account management tools and options.
Step Two – Start Saving for Future Occasions
Put your St Anne Credit Union accounts to work for you. Use your New Bedford Share savings to create an emergency fund that can be used if you need unexpected car repairs, get your hours reduced at work or if anything else comes up that requires immediate payment. This will make you less reliant on your credit cards and more on your credit union savings. Put some money away each month into a St Anne Christmas Club savings account to save ahead for holiday gift-buying, parties and other end of the year purchases. It’s a great tool for annual saving to help you avoid putting it all on your credit card. A money market account can also be used to stash money for big purchases, such as a down payment on a car or even purchasing a car outright, to help lower your costs on the day of purchase.
Step Three – Never Miss a Payment
When you miss a payment on a loan or credit card bill, they tack on late fees and sometimes other charges, making your bill go up and up. While you are working on paying down your debt for other credit cards and loans, make sure to at least make the minimum payment due for all of your other accounts. You can set up alerts for better checking account management, set up automatic payments through your account websites and use other convenient tools to help remind you to make these payments to avoid late fees, additional interest and other costs.
Step Four – Go Over Your Budget
You need to know how much you are spending each month on things like utilities, groceries, cell phone bills, entertainment, fast food, and other expenses. When you start totaling things up, you may well see where all of your money has been going. If you get just one $5 coffee a day at your favorite coffee shop, you could be spending as much as $150 a month – plus any tips that you leave your barista! That money would be better spent padding your credit union savings account or going into your Christmas Club savings account to help keep you out of debt. Get rid of expenses you don’t need. Brown bag your lunch a couple of times each week to cut down on fast food costs. It’s healthier and you will keep more money in your checking account management for paying high interest bills.
Step Five – Visit St Anne Credit Union in New Bedford
Make time to speak with your representative at St Anne Credit Union to discuss your goals and plans. They can tell you about new ways to use your New Bedford Share savings, money market account, and other options for credit union savings to your advantage. You can even discuss putting all of your debt into a low-interest loan that will help you to pay everything down faster and reduce the amount of monthly interest and fees that you are paying. Give us a call at 508-993-0011 to speak with one of our team members over the phone or stop by our location on Union Street in New Bedford, Massachusetts.