Jackie veling
If you have high interest consumer debt, taking control of your money in the New Year can seem overwhelming.
Most Americans say the COVID-19 outbreak has caused financial stress, according to a survey released in October by the National Endowment for Financial Education, with 30% of debt as the main stressor.
Despite the pandemic, you can still pay off your debt with the right plan. Here’s how.
Face your debt
The first step is simple, but it can be the most difficult: you have to face the problem.
Angela Moore, a Miami-based certified financial planner and founder of Modern Money Advisor, which offers online consumer advice and education, says it’s common for her clients to know they are in debt but don’t know how much.
She recommends compiling your debt on a document or spreadsheet, listing all balances, minimum payments, and interest rates.
Although the task is intimidating, most of her clients feel relieved once it is completed.
“Debt is an emotional burden,” she says, “but often that overload goes away once you have clarity. “
Communicate with your lenders
After you’ve listed your debts, it’s time to call your creditors.