VisionBank of Iowa
VisionBank of Iowa
Skip to main content

All VisionBank locations will be closed on Monday, July 4 in observance of Independence Day. You can still take care of all your banking needs through VisionBank Online, your mobile app, or by stopping by any of our conveniently located ATMs. 

Inch By Inch

May 16, 2022

News Item Image

Small steps to dig out of debt.

Digging out of debt can seem overwhelming, but don’t let that stop you from developing a plan. Like many things in life, you can take small steps to arrive where you want to be. Here are some basic moves to climb out of debt.


Prioritize

The best way to pay down debt is to attack the debt with the highest interest rate first. Once you get that debt paid off, you move on to the next highest interest rate. Interest rates are killer, taking the highest out first will free up money faster.


Brave Your Budget

You need to squeeze as much money out of your budget as possible. That means getting tough on your monthly spending. Cut back on as many expenses as you can. No, this won’t be easy. But keep in mind that it’s temporary. Once you pay down your debt, you can revise your budget once again.


Make a Call

As US News reports, a phone call can go a long way toward paying down your debt. Simply call your lenders and ask about any available financial hardship programs. Many lenders, especially now during the pandemic, will be willing to work with you on a payment plan.


Get Automatic

Once you get a handle on your debt, make savings automatic so that the circle of overspending doesn’t continue. If you have a solid emergency fund and a sizable savings account, you’ll be less likely to go back into debt down the road.

 

 

This article was originally posted on savvymoney.com 

 

The material provided on this page is for informational use only and is not intended for financial, tax or investment advice. VisionBank and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

« Back

© 2022 VisionBank of Iowa. All Rights Reserved.