Debt free. Just let those words sink in for a moment. Wouldn’t you love to learn how to get yourself out of debt and stay in control over your finances? The average person has not received the education they need to learn how to utilize the tools at their local credit union in New Bedford to effectively manage their money. However, when you join St Anne Credit Union in New Bedford, our team of customer service representatives and selection of financial tools can be used to help you achieve your goals. From credit union savings to a powerful New Bedford checking account, we have everything you need to get in control and learn how to become debt free.
Hard Work and Determination
While there are lots of tools that can be used to help a person or household become debt free, the most two essential ingredients are hard work and determination. You need to be fully committed and stay on top of your finances to achieve your debt free goals. Be prepared to make some tough decisions, learn how to say “no” when it comes to unnecessary expenses, and stay focused on the prize. Learning how to make the most out of every dollar, align your spending and saving values, make extra payments to reduce interest charges, and establish realistic goals is just half the battle. You have to be in it for the long haul and be ready to attack your existing debt head-on using the tools available at St Anne Credit Union in New Bedford.
The best way to get started is to create a budget. Whether you are managing a household or running a multi-million dollar corporation, a budget is the best way to establish a financial plan. Experts say that the best way to take control over your expenses is to create what is known as a 50/30/20 budget. What that means is that 50 percent of your income would go to essential expenses, such as housing, utilities, car payments, and insurance. The next 30 percent of your income would go for the things that you want, like taking a day trip to the shore, going out for dinner with friends, taking the kids to the movies, or heading off to the ballpark to take in a game. The remaining 20 percent would be used to pay down debt or tuck away into a savings account. This is a realistic approach that will help you stay on track without being tempted to spend your savings or miss payments to get the things you want or pay for the things that you need.
Evaluate Your Spending and Savings Habits
No one likes to have a mirror put in front of them that reveals all of their faults, but when you do it to become debt free, it can be very beneficial. Take a look at your New Bedford checking account records and see how you spend your money every month. Write down every expense. While those little things can sometimes help us get through our stressful work-week, they can also put a noticeable strain on our finances. Tiny expenses can add up quickly. Break the cycle of overspending on unnecessary costs by building a solid budget, regularly analyzing your accounts at St Anne Credit Union in New Bedford, going over your credit card statements, and by creating smart spending habits.
Your credit union savings accounts need regular checkups and focus as well. Learning how to separate your savings effectively for emergency expenses, future expenses, and paying down debt can be extremely beneficial. Downscaleyour lifestyle, reduce instead of eliminate, make cost-effective changes, and be committed to paying down debt. You can’t save if all your money is going to needs, wants, and paying down credit cards. Be smart about how you pay off debt and free up some cash so you can stash it in your savings accounts at the local credit union in New Bedford.
Why Extra Payments Make Cents
While it might not seem like a lot at the beginning, extra payments on things like loans, credit cards, and other types of interest-charging debt can pay off. There are lots of great tools online that you can use to your advantage that will help you see the benefit in paying debt off at a faster rate than what the loan company or credit card company suggests. Paying more than the minimum payment can reduce the amount of interest that you pay over the term of the loan, but you need to read the fine print first. Some loans have pre-payment penalties, ensuring that the financial institution still gets the benefits of offering you the auto, car, or personal loan. However, in some cases, the pre-payment penalty will be less than what you would pay in interest anyway, so it’s still a “win” for you in the long run. Making extra payments toward bills – even by just a small amount – will add up over time and help you to become debt free even faster.
Ready to get started? Contact our team at 508-993-0011 and start taking charge of your finances. It all starts with a basic credit union savings account to establish your membership at St Anne Credit Union in New Bedford, and then a whole world of opportunities will come available to help you get in control and become debt free. Speak with one of our consultants on the phone or stop by our branch on Union Street in New Bedford to become a member today!