Debt has become a way of life in America. However some states are in debt more than others. If you are in debt you are not alone. According to TransUnion, the average consumer credit card balance is $8,000. Alaska leads the country with the highest average credit card debt of $7,827, followed by Nevada $6,636, Tennessee $6,568, North Dakota $4,403, and West Virginia $4,517. These figures are alarming and should be a wake-up call to become debt free. A goal for this year should be to pay down your debt. Here are 5 tips to pay down debt:
1. Stop charging – stop charging to avoid going further into debt. Pay with cash instead of credit.
2. Create a budget or spending plan – create a budget to track your spending and reduce expenses. Shop at discount stores, outlets, use coupons, carpool, etc. to find extra money, which can be used to pay down debt.
3. Send more than the minimum – sending just the minimum will extend the time it takes to pay the balance. Send at least $10 more than the minimum each month pay down the balance faster.
4. Use automatic payments – setup automatic payments from your checking account the day you receive your paycheck or soon after you receive your paycheck
5. Negotiate – contact your creditor to negotiate a lower interest rate and/or monthly payment, also ask to have any late fees, over-the-limit or other fees waived
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