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Credit Cards

5 Ways to Pay Off Debts Comfortably

Date:
March 29, 2021

Prioritizing debts can save you money, streamline your monthly payments and cut down on stress. 

Let’s look at a few ways to get smart about your credit cards - ways to pay off your debt faster, while also saving you more money.

First, look around. Everybody has debt. You’re not alone. Sometimes it helps to know what others are dealing with. Here’s a breakdown of the average American’s debts:

  • Mortgage: $35,660
  • Auto loan: $4,760
  • Credit card debt: $2,980
  • Student loan: $5,610
  • Other debt (personal loans, payday loans, etc.): $1,520

Make your own list

Sit down and make a list, compiling all of your debts in one place. Note the date when payments are due each month. Keep the list handy and updated, too. 

Think practical

Whatever your debt is like, don't let the numbers overwhelm you. Take a breath and think practical. 

  • Start with the debts that cost you most money (the ones where you’re paying the most in interest charges every month). Work on paying off those first.
  • Keep payments within your budget. Avoid huge payments whenever you can. 
  • Make smaller payments more regularly. It’s a smarter, more comfortable approach.

Stop using your costliest card

Find the card that’s charging you the most in interest, and set it aside now. Take it out of your wallet and disconnect it from autopay. You’ll start saving money right away, and if you need to use other cards in its place, at least they won’t cost you as much.

Refinance your loans

Talk to your lenders and see what’s possible. When you shift to a loan with a lower interest rate, you’ll save month after month. Transfer fees and origination fees are usually involved, but you might save as much over the first several months. It’s a low-impact way to hold onto more money - funds you can redirect to pay down your cards.

Use apps like Bright

Lots of apps are designed to manage your debt - scheduling payments, helping with budgets and offering savings tips. 

Your personalized Bright Plan goes a step or two further, using data science to find the fastest, smartest ways to help you save more. Bright handles everything for you, creating a plan tailor-made to you, your style and your spending habits. Your Bright Plan also makes your payments for you, automatically, and even adjusts when your plans shift.

Just connect your cards, set your goals and your Bright Plan gets to work.

Content Team
Bright Money

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