8 Steps for paying down debt

Indianapolis Recorder’s Smart Money Week continues with Everwise Credit Union sharing strategies for paying down debt. Paying down debt is important to your financial wellness because it helps you make the most of your money. The less money you pay in interest fees, the more money you’ll have to put towards your goals. Paying down debt is possible if you strategize! Here are 8 steps to pay down your debt: (Photo provided/Everwise) Create a budget to know your income, expenses, and cash flow. Look back at Tuesday’s post from our daily financial wellness topics for help. Organize your debt. Determine how much debt you have. List every credit card with an outstanding balance and note the amount owed to each. Next, list the interest rate of each card. Do this for any other fixed installment loan debt you have as well. Then add up the amounts owed on each account to reach your total outstanding debt amount. Trim nonessential expenses and/or generate more income to have as much cash flow as you can. By trimming spending in one budget category and channeling that money toward paying down debt, you can maximize your debt payments. You can also find ways to...