Paying Off Debt

Get your finances in order and start paying down that debt. Everyone's debt situation is different, from student loans, to car payments, to credit cards. We can help you put together an action plan to get you on the path to financial freedom.

Failing to plan for the unknown in life is how most people end up in debt. The most important step to paying off debt is having an emergency fund. Using a credit card "for emergencies only" is like saying you would rather allow MasterCard, Visa or American Express to be your backup plan instead of taking the time to make a plan of your own. There is a better way.

The second most important step in paying off debt is to have a spending plan (i.e., a budget) every month. The lack of a monthly plan is what leads to paycheck-to-paycheck living (also known as "crisis living").

Discover the basics of the debt snowball -- the best plan of attack on debt!

Start by listing your debts in order, from the smallest balance to the largest. The idea of the snowball is simple: Pay minimum payments on all of your debts and attack the smallest one to pay it off as quickly as possible. Every extra dollar should be applied to that smallest debt until it is gone. Then, attack the second-smallest debt. Every time you pay a debt off, you add its old minimum payment to your next-smallest debt payment. So, as the snowball rolls over, it picks up more snow.

Ask us about our debt snowball calculator -- it's free! Click below for our contact details, or email us at credit_union@gallupfcu.com.