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.
- 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.
- 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.
- 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.
- 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.
- 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.