31_Get-out-of-Debt

How Can I Get Out of Debt?

It’s been said that nothing in life is certain except for death and taxes. Well, you might as well add another entry to the list because it’s nearly impossible to get through life without at least a little debt. But, what if debt has become a bigger part of life than you originally anticipated? If you’re looking for a way to get out of debt and make financial freedom a certain part of your future, here are a few tips to help you along the way.

Consider a Debt Consolidation Loan

It might seem unintuitive at first—take out another loan to pay off your existing debt—but debt consolidation actually makes a lot of sense for a lot of people. Debt consolidation combines multiple, often high-interest loans into one lower interest monthly payment so you can get out of debt faster while paying less interest. It can also simplify life and reduce the stress of keeping track of multiple payments and multiple lenders by having one single debt payment.

Maybe the best part of a debt consolidation loan is that your high-interests debts are paid off by your new loan so that you can focus on a more financially stable future with fewer distractions and a whole lot less interest. Of course, a debt consolidation loan won’t help you in the long run if you continue to practice bad spending and saving habits, but it can be a step in the right direction if you’re willing to put in the work.

Practice More Frugality

No one likes to be told to stop spending money, but if you’re looking for a way to get out of debt, there’s simply no other way around it. Financial guru Dave Ramsay has a few suggestions to help you stop spending your hard earned income, so that you can get out of debt faster. These include cutting the cable, consignment shopping, couponing, and perhaps most difficult yet most important of all – stop eating out. Sure, eating out is easier and sure, you can’t stand the taste of your own cooking, but if you’re serious about getting out of debt, you’ve got to grin and bear it. Make a weekly shopping list, cut some coupons, and try some new recipes on the internet. If you’re still not convinced, try making a game of it. See how many days you can go without eating out, and then try to beat your record the next time. Or, find a few recipes you really like, and when you’ve mastered them, invite some friends over to show off your newfound culinary skills.

Confront Your Debt Today

The most important step you’ll ever take toward getting out of debt is to confront the problem and start working your way out. If you’re reading this, you know that one of the worst things about debt is that it’s so easy to ignore. You schedule a minimum monthly payment, forget about it, continue spending money, and before you know it you’ve maxed out several credit cards and your net worth is nonexistent. Yes, it’s uncomfortable to face up to reality, but you can’t keep ignoring the problem. By recognizing the seriousness of your debt, you can seek help (either through debt consolidation or some other way), stop spending, and buckle down to get out of debt.

If you’re ready to get out of debt, consider calling for a complimentary credit review. We can walk you through the steps of a debt consolidation loan and try to help you on your way to becoming debt free.

News & Events
Oct 11, 2018 / Local Utah

There’s a lot to think about when deciding where to put your money. But if local ownership, personalized service and attention, and commitment to community are important to you, there’s a good chance you’ll want to consider a credit union. But which one? With so many Utah credit...

Oct 03, 2018 / Money Tips

Life is all about compromise. A concession here and a settlement there; you meet in the middle and move forward with a decision. You might not get everything you want, but you’re happy with the end result because that’s how life works, right? The ability to compromise is a strength,...

Sep 26, 2018 / Money Tips

We’ve all been there before – that moment at the checkout counter when you swipe your card with one hand and cross your fingers with the other, hoping that you have enough funds to cover the purchase. If you don’t have overdraft protection, the transaction could get declined. And...

Corporate
200 E South Temple
Salt Lake City, Utah 84111
800-234-0729
Monday - Friday: 9:00 am - 5:30 pm
View In Google Maps
Routing & Transit Number: 324079500
NMLS # 446035

Utah First Federal Credit Union is federally insured
by the National Credit Union Administration.