5 Smart Strategies to Take Control of Your Debt

Let’s be real — debt happens. From credit cards and student loans to auto payments and mortgages, borrowing money is a part of life. But when it piles up or gets out of hand, it can seriously stress you out.

Here’s the good news: You’re not stuck. With the right game plan, you can ditch the overwhelm and take back control. Ready? Let’s go.

  1. Know What You Owe (Yep, All of It)

It’s time for a financial reality check. Make a full list of your debts — every credit card, loan, and balance. Include:

  • Name of the lender
  • Total amount owed
  • Minimum monthly payment
  • Interest rate
  • Due date

Seeing it all laid out might feel intimidating at first, but knowledge is power. And this list is your roadmap to freedom.

  1. Build a Budget You’ll Actually Stick To

A budget doesn’t have to be boring — it just needs to work. Start by tracking your spending: bills, groceries, subscriptions, coffee runs, all of it. Make sure to include:

  • Essentials (housing, utilities, food)
  • Minimum debt payments
  • Savings (yes, even a small amount counts)
  • Fun money (because cutting everything never works)

Pro tip: Be honest, not perfect. A realistic budget gives you control — not guilt.

  1. Pick Your Payoff Plan: Snowball or Avalanche

Got extra cash after covering your essentials? Apply it to your debt using one of these tried-and-true methods:

  • Snowball: Pay off the smallest balance first for quick wins and momentum.
  • Avalanche: Tackle the highest interest rate first to save the most money long-term.

Pick the one that fits your style — what matters most is staying consistent.

  1. Stop Adding to the Pile

We know — emergencies happen. But try to avoid taking on new debt while you’re working your way out. That means:

  • Skip the store credit card
  • Hit “pause” on big-ticket buys
  • Stick to cash or your debit card when possible

Keeping your balances from growing is just as important as paying them down.

  1. Talk to Your Lenders (Seriously, Just Ask)

Don’t ghost your creditors. If you’re struggling, reach out — they might surprise you with helpful options like:

  • Consolidation loans
  • Balance transfer offers
  • Hardship programs

Being upfront gives you more control and can lead to real relief.

 You’ve Got This — And We’ve Got Your Back

Managing debt isn’t easy, but with consistency and a plan, you will see progress. Celebrate the wins (even the small ones) and remember: you’re moving forward.

Need help mapping it all out? Carrielyn Reynolds, our Certified Financial Coach, is here to support you. 📞 Call (207) 660-6267 or 📧 Email creynolds@newdimensionsfcu.com.