Help for 6 Common Money Issues
Burden #1: You Feel Like You’re Never Going to Pay Down Your Debt
How to Shed It: “The first thing you need to do to get out of debt is stop the bleeding,” says Anderson. “Many people still use credit cards
and still try to take out loans.” Anderson’s advice: For a couple of months, stop using your cards as much as possible, and
start paying the minimums on them. Regularly paying the minimums will help you to grasp the idea of living on what you’re
making, she explains, adding that once you’re able to live within your means, you can then concentrate on paying off the debt on the card with the highest interest rate. When that’s paid off, work on the one with the second highest rate, and so on.
If you have any money left over after paying the minimums, Anderson suggests building an emergency fund. While you may be inclined to pay down your debt faster, if you don’t have an adequate emergency fund, you could be tempted to rely on credit cards again to cover any unforeseen expenses.