Not all debt is bad. Having a mortgage, for example, helps you establish credit, build equity and provide possible tax advantages. But, if you have credit card balances you're unable to pay each month, you're wasting money on interest. And, excess debt makes it difficult to save money for things you may need or want down the road.
To avoid becoming a slave to your debt, Regions can help you develop a plan for reducing debt to achieve real financial freedom. If you stick with it, eliminating your high interest debt is easier than you think.
Get Control of Your Spending
The first step is to regularly spend less money than you have. If you can't live within your means, you need to change your lifestyle and cut expenses wherever possible. It's probably going to be tough at first, but keep focused on how much your debt goes down. If you look closely at your budget, you're sure to find some excess fat to trim.
Start with the small stuff. Can you do without that coffee stop every morning? How about foregoing your newspaper subscription and using the Internet instead? What about cutting the number of TV channels you get? Take a hard look and you'll likely find something on your budget list you can do without.
Then, shift your focus to the bigger items. Can you reduce your monthly mortgage payment by refinancing to a lower rate? Can you and your spouse get by with just one car? Do you have any assets you can sell? Making big changes for reducing debt may be painful at first. But, you'll put a big dent in your debt and be on your way to a worry-free financial future.
Let Regions Help
We know debt consolidation and/or reduction is difficult and we're ready to help. The professionals at Regions can answer your questions, assist you with developing a plan based on your situation, and help you stick to it.
Start with our easy-to-use calculators for answers to questions like:
Although you may have a tough road ahead, you can accomplish your debt goals. Regions provides tools and solutions to help you stay focused on reducing debt and get you to a debt-free life sooner. Before you know it, you'll be paying cash for life's pleasures instead of racking up more debt!
- Save Time - Bulk cooking saves time (and money). By planning, shopping and preparing several meals at once, you economize on several levels at once, creating healthier meals, taking advantage of bulk buys or sales, cleaning up once and freezing extra portions for a meal the following week.
- Save Money - Everyone loves their digital video recorder (DVR). The flexibility to record movies for later viewing means you can potentially cancel your expensive movie package or video streaming service, saving $15-$35 a month.
- Save for the Future - The Freecycle Network is an open grassroots internet community of more than eight million members in 85 countries dedicated to the idea of re-use and sharing of durable goods. It's about giving away perfectly good things like coffee grinders, mp3 players, refrigerators, computers, furniture and the like — and keeping them out of landfills.
- Save Time - Plan the night before to save precious time in the mornings: get your clothes ready, shower, pack your work or school bag, pack your lunch and snacks and finally, make sure your car has gas.
- Save Money - Stop smoking. No, it's certainly not easy to quit, but if you smoke a pack and a half every day, that amounts to nearly $3,000 a year you can realize in savings if you quit.
- Save for the Future - Showers instead of baths (and shorter showers!), lowering the hot water heater thermostat, low-flow shower heads and not running the faucet while you shave or brush your teeth will not only preserve precious resources — it will save you money every month.
This information is general in nature, is provided for educational purposes only, and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. Regions neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.