Page 104 - South Mississippi Living - January, 2020
P. 104

FINANCE & FITNESS
STEPS TO GETTING
Out of Debt
story by Lauren Rackley
Getting out of debt is the first step toward financial health. However, large amounts of debt can be intimidating, and the
hardest part of getting out of debt is figuring out how to start.
Dylan Black, assistant vice president and commercial lender at Community Bank recommends
writing out monthly expenses and eliminating unnecessary services to determine how much of your money remains at the end of the month. “Figure out which debts are the most debilitating and address those
when people make the minimum payment on credit cards. The majority of your minimum credit card payment goes to the interest accrued for that month and making only the minimum payment won’t lower the balance on the card by much, which keeps you mostly paying interest for many years,” Black stated.
with your extra cash.” Once you compare your
monthly income with your monthly expenses, create a budget and a structured repayment plan.
Budgets put you in control of your finances and help you torecognizeyourspending and saving habits. A budget ensures that you will have enough money to pay off
debt at the end of the month.
“Figure out which debts are the most debilitating and address thosewithyour extra cash.”
Many local banks offer free digital tools that can help to manage your money. Keesler Federal Credit Union’s website, kfcu.org, contains various financial calculators, including a debt-to-income calculator and a calculator that can help you to meet a debtpayoffgoal.
Community Bank offers an online tool called MyMoney. This tool breaks down your spending by category, helps
A set repayment plan allows you to make regularly scheduled payments that pay off debt in manageable increments. While a debt repayment plan needs to be manageable, payments must be substantial enough to address the interest accruing on a debt in addition to the debt itself.
“By far, the biggest mistake I witness is
you to create budgets and financial goals, and maintains a cash flow calendar.
If you have been struggling with debt, the new year is the time to take the first step toward financial health. Consider implementing one or all of these tips to get out of debt quickly and as painlessly as possible.
104 | January 2020 www.smliving.net | SOUTH MISSISSIPPI Living


































































































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