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Tips to Save Money on
Paying Debt
Special to
The Truth
Over extending oneself on
high-interest rate revolving debt purchases is not uncommon.
Indeed, U.S. households who use credit cards have an average
of $15,799 in credit card debt, according to the non-profit
Consolidated Credit Counseling.
“If you’re not strategic about
the way you make repayments, you could end up spending more
paying down your debt, and at rates that may increase over
time,” says Stephanie Cutler, vice president of Wells
Fargo`s Personal Lines and Loans.
If your high-interest rate
revolving debt seems overwhelming or stressful, Cutler says
to consider the following:
Consolidate Debt
Juggling multiple high-interest
rate debts can be costly and confusing. With a personal
loan, which often comes with a lower interest rate than what
credit cards offer, consumers can take funds from the loan
and pay off high-interest rate revolving debt, maintaining
one monthly payment at a potentially lower interest rate.
Additionally, some personal loans are offered with no
origination or prepayment fees, which can help save money in
the near- and long-term.
Personal loans from Wells Fargo,
for example, require no collateral to qualify and credit
decisions can be made quickly. The bank can even pay off
creditors directly, giving customers an opportunity to begin
paying down debt on better terms right away. With loan
amounts from $3,000 to $100,000, customers can customize the
loan based on the amount needed, and loan terms up to five
years.
“Rolling your debt into a single
loan won’t immediately reduce your debt, but it does offer a
single predictable monthly payment,” says Cutler. “Plus,
having just one bill can make tracking and payments easier.”
With what you may potentially
save on monthly interest payments over time, you can
increase your cash flow, savings, or pay down more of the
loan’s principal balance to see your debt shrink even
faster. (Incidentally, personal loans are also a way to
finance a major purchase, unexpected expenses like home or
automotive repairs, or even medical expenses.)
To calculate how a personal loan
may save you money, visit wellsfargo.com to use their free
Rate and Payment Calculator. More information about Personal
Loans can be found at wellsfargo.com/personal-credit/personal-loan.
Track Spending
While consolidating debt, don’t
forget to adopt and maintain savvy spending habits. Be sure
to keep track of where your money is and how you’re spending
it. Use budgeting tools online to display deposits and
spending by category. This information can help you spend
smarter and increase what’s left at the end of each month to
direct toward payments on your loan principal.
“Even a little extra can go a
long way to paying down debt sooner and less expensively,”
says Cutler. “Consider setting up online automatic payments
from your checking account to make the process simple and
stress-free.”
To pay down credit card debt,
consider all your alternatives with your lender and your
personal spending habits.
Courtesy StatePoint
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