Climbing out of debt can be daunting, but deciding to take action is the first step. Aberdeen Proving Ground Federal Credit Union (APGFCU) has debt counselors, financial planners, and lots of resource to help you manage your debt.
First, make a list of all debts owed, then implement one of the following strategies:
- Debt snowball: Pay off the smallest loan as quickly as possible. Once that debt is paid, take the money that went towards that payment and roll it onto the next-smallest debt owed.
- Debt Avalanche: Similar to the avalanche, but concentrate on paying off the highest interest debt first and minimum payments on all other debts.
- Debt Blizzard: approach where we start with the debt snowball method or smallest debt first and then switch to avalanche where we pay off highest interest rate next
Debt consolidation loans can also be used to combine multiple debts into one easy monthly payment, and you may even qualify for a lower interest rate. However, this can make it easy to fall into the cycle and run up credit card debts again.
Learn about all of your options for find a financial counselor here.
