Are you doing these 6 steps to successfully pay off your debt? – WXYZ Detroit

  • March 4, 2020
  • By: Greenpath Financial Wellness

Excerpt and video from WXYZ Detroit’s story, Are you doing these 6 steps to successfully pay off your debt?

Featuring Kristen Holt, president and CEO

March is Credit Education Month. Did you know 78 percent of Americans are living paycheck-to-paycheck?

When you’re talking about debt, millions of people are dealing with it.

Mark Powell of Waterford is really focused on paying off his college student loans, but that’s not all.

“The credit card, the payment is pretty high,” he said.

Tamika Brooks of Detroit is trying to save money to buy a house in a year. What’s her biggest concern?

“Credit cards,” she replied.

Robert Adams of Detroit is retired, but he is optimistic he’ll pay off his plastic.

“I could pay that off…in about six months time,” he answered when asked how soon he could tackle his debt.

GreenPath Financial experts said 41 percent of the country is dealing with revolving credit card debt – the amount left over when we can’t pay off our credit debt at the end of each month.

Kristen Holt is the CEO of GreenPath Financial Wellness – a national non-profit credit counseling organization that’s based in Farmington Hills.

HERE ARE SIX STEPS GREENPATH SUGGESTS FOR PAYING OFF DEBT:

1. Write down your why

Think about what will inspire you to reach your goal. You may even find multiple reasons to motivate you.

“You might want to reduce stress. You might want to be able to spend more time with your family,” said Holt.

Maybe you want to save for a big trip or for a comfortable retirement. Whatever the reason is, write it down.

2. Set specific targets & deadlines

“Like I want to save $5,000.00 in the next year to go on vacation,” Holt explained as an example.

You’re setting a specific monetary amount and a deadline on the calendar to help reach your end goal. Now it’s time to get down to the nitty-gritty.

3. Set mini-goals

It’s important to set smaller benchmarks so your overall goal is not so overwhelming. It’s about climbing that mountain one step at a time.

“$5,000 in a year is about $20 a day or $100 a week or $400 a month,” said Holt.

Every little bit adds up.

4. Evaluate your monthly spending

Holt said you need to know where your money is going to make this process work.

So, list how much money is coming in to your household and how much money is going out.

Also, you need to note how much you’re charging. Apps can be helpful with this process.

Continue here to read the entire article at WXYZ Detroit.

 

GreenPath is Here to Help

At GreenPath Financial Wellness, we are working to make it easier for everyone to achieve financial health. We can help you gain a better understanding of your spending habits, and we can help you create a plan to pay off your credit card debt.

Request a Call with a Financial Expert

Kristen HeadshotKristen Holt is president and CEO of GreenPath Financial Wellness based in Farmington Hills, Mich. GreenPath is a national nonprofit that supports lifelong financial wellness for everyone.