Strategies for REPAYMENT

BROUGHT TO YOU BY THE MOUNTAIN OF DEBT Debt is stressful, it’s expensive and it limits the amount of money you can put toward your life goals BUILD YOUR DEBT REPAYMENT PLAN • Get organized • Choose a strategy • Follow a monthly plan Get ORGANIZED GET ORGANIZED

Make a list of all of your

LOAN

CREDIT MEDICAL STUDENT AUTO MORTGAGE CARDS BILLS LOANS GET ORGANIZED

For each debt, write down:

DEBT:

BALANCE: RATE: MINIMUM PAYMENT: GET ORGANIZED

For example:

DEBT: Gold Rewards Card Debt

BALANCE: $1,400 : 19.05% MINIMUM PAYMENT: $30/month Choose your STRATEGY The strategy you choose will affect the order in which you pay off your debts THE SNOWBALL METHOD

HOW IT WORKS WHO IT’S FOR

Debts are arranged and paid This strategy is ideal for off from smallest balance to beginners or for those who largest balance—small debts rely on visible progress in are quickly crossed off your order to feel motivated list, which can give you a confidence boost THE AVALANCHE METHOD

HOW IT WORKS WHO IT’S FOR

Debts are arranged and paid Those who want to use the off from highest interest rate most mathematically powerful to lowest interest rate—this strategy; those who are strategy eliminates your most determined (your most expensive debt first expensive debt may also have a large balance) CONSOLIDATION

HOW IT WORKS WHO IT’S FOR

A new is taken out Those who are having and the borrowed trouble keeping track money is used to pay of all their various debts off all your other debts, and repeatedly missing leaving you with only one payment due dates loan to keep track of as a result If you don’t know which strategy is best for you, talk to your credit union about debt counseling or other resources Follow a MONTHLY PLAN Add ’em up Add up all your minimum payments— you must have this total in your monthly budget in order to avoid additional fees Set a payment Define an additional amount of money to put toward loan repayment every month—be generous and realistic Start at the top 1. Credit Card The first debt on your $30 (minimum) $150 (additional) list (this will vary, based 2. Student Loan on the strategy you chose) will receive its minimum balance plus 3. Mortgage the additional funds you set aside for debt repayment Make the minimums 1. Credit Card The rest of the debts $30 (minimum) on your list will $150 (additional) receive their minimum 2. Student Loan payments $80 (minimum) 3. Mortgage $1,028 (minimum) Increase your payment 1. Credit Card When you pay off a 2. Student Loan debt, cross it off the list $80 (minimum) and add its minimum $150 (additional) $30 (credit card payment to the next minimum) debt on the list (along 3. Mortgage with the additional debt $1,028 (minimum) repayment funds) BROUGHT TO YOU BY

Sources: Credit Counselling Society, Forbes, Investopedia.com, TheBalance.com, TheSimpleDollar.com