Arvada Chamber of Commerce

  • Home
  • COVID-19
    • COVID-19 Resource Overview >
      • Business Toolkit
      • Webinar Series
      • Creative Commerce
      • Shop Local Deals
      • Virtual Experiences
      • Workforce Toolkit
      • Chow For Champions
    • COVID-19 Business Guide
    • Safe and Open
    • PPE Supplies
    • Arvada Resiliency Taskforce
  • Members Only
    • Member Portal (Login)
    • 2021 Member Engagement Opportunities
    • Groups >
      • Arvada Young Professionals
      • Inspiring Women
      • Networking Groups
    • Member Stories
    • Business IQ
    • Sponsorship Opportunities
    • Ribbon Cuttings
  • Membership
    • Why Join?
    • Membership Levels
    • #ArvadaStrong
    • Testimonials
    • Join the Chamber
  • The Chamber
    • About Us
    • Chamber Staff
    • Board of Directors
    • History
  • Our Priorities
    • Workforce
    • Advocacy
    • Leadership >
      • Leadership Bootcamp
      • Business Bootcamp
    • Healthcare
    • Telling Your Story
    • Networking
    • Resiliency
  • Events
    • Chamber Events
    • Events Calendar
  • Resources
    • Blog
    • What’s Important Now Podcast
    • Directories >
      • Arvada Dining Guide
      • Arvada Non-Profit Directory
      • Arvada Fitness Directory
      • Arvada Gift Card Hub
    • Publications
    • #ShopLocal Deals
    • Arvada Career Hub
    • Arvada City Council
    • Arvada Visitors Center
  • Directory
  • Toggle Mobile Menu
  • Toggle Search
  • RSS

Paying Down Debt by On Tap Credit Union

August 17, 2017 by Molly Kust Leave a Comment

With the New Year coming up, many people may be thinking about what they can do about reducing their personal debt, which in America has reached almost staggering levels: the average amount of household debt tops $134,000, including mortgages, credit cards, car loans and student debt. That’s a heavy load financially and personally – carrying more debt than you’re comfortable with, or feeling like you can’t get out from under it, is stressful. It is important to remember though, that there are always ways to clear debt. Having large amount of debt can impact your credit score and can limit your access to new credit; those concerned about their credit scores can take a look at this guide to go about getting a free credit report and begin making the changes necessary to repair their score. It might be a smart idea for some to consider some credit card consolidation to make those payments one loan so it is easier to budget for but I digress.

The first step to paying down your debt, according to Coors Credit Union financial advocate Angelique Strell, is to make an honest and complete list of all your debts, along with the associated interest rates and payment requirements. Then, create a budget that recognizes your income and your spending – all of your spending, including those regular stops at Starbucks or the manicurist. Identify areas where you can cut spending and determine the total amount you have available to apply toward your debt payment plan, as well as doing this you could look into companies that offer debt consolidation loans, but make sure you do your shopping around to find the best company for your position.

From there, two different approaches are common: one is to start by paying off the debt with the highest interest rate first, which would save the most money; the second is to focus on paying off the smallest bill first to get it off your list, and then take the money you were paying toward that bill and combine it with what you were paying toward the second smallest bill to get that paid off more quickly, and so on. Of course, whichever approach you take, you need to continue to meet the minimum payments on all your debts – otherwise you may be facing late fees and missed payment penalties, making your debt grow instead of shrink.

Unfortunately, there are times when paying down debt isn’t realistic and just meeting the minimum payments is a fact of life. If you’re in a situation where you’re barely making your bills, it may not be the time to focus on paying down or off your debt, especially until you have a budget in place that might free up some funds. In any case, Angelique recommends against withdrawing money from a 401K or retirement fund to pay down current debt, pointing out that the long-term loss of accrued income will be far greater than the current debt.

And above all, if you’ve committed to paying down, or even paying off, your personal debts, don’t take on any new debt if it’s at all avoidable? you’ll just be digging yourself further in the hole you’re working to escape.

Related Posts

  • Investment Property – Profits and Pitfalls by On Tap Credit UnionInvestment Property – Profits and Pitfalls by On Tap Credit Union
  • Member Spotlight: The Arvada Soccer AssociationMember Spotlight: The Arvada Soccer Association
  • The Only 2 Website Stats That Actually Matter | By Heath Rost, Personable MediaThe Only 2 Website Stats That Actually Matter | By Heath Rost, Personable Media
  • Creative CommerceCreative Commerce
  • JCBL Legislative Update: At the halfway mark, a tentative deal on new transportation funding by Jeff Weist, Jefferson County Business Lobby
  • February AYP Member of the Month: David Gass, Gallery 1874February AYP Member of the Month: David Gass, Gallery 1874
  • 5 Quick Tips to Optimize Your Chamber Profile by Lynn Sierras-Krone, Arvada Chamber of Commerce5 Quick Tips to Optimize Your Chamber Profile by Lynn Sierras-Krone, Arvada Chamber of Commerce
  • What you can Expect from the Arvada Chamber in 2021What you can Expect from the Arvada Chamber in 2021
  • Special Insurance Needs – Covering Yourself with Riders by Karen Macdonald, On Tap Credit UnionSpecial Insurance Needs – Covering Yourself with Riders by Karen Macdonald, On Tap Credit Union
  • No Foolin’: G Line Grand Opening Set for Friday, April 26 | By The Regional Transportation DistrictNo Foolin’: G Line Grand Opening Set for Friday, April 26 | By The Regional Transportation District

Filed Under: Personal Finance

Blog Post Categories

  • Advocacy (1)
  • Arvada Works (9)
  • AYPMOTM (9)
  • BizSummit (5)
  • Chamber Best Practices (6)
  • Chamber Update (25)
  • COVID-19 (39)
  • Events (29)
  • Government Affairs (27)
  • Health and Wellness (4)
  • Healthcare (4)
  • Human Resources (3)
  • Innovation (2)
  • Inspiring Women Member Spotlight (2)
  • Leadership (5)
  • Marketing and Communications (4)
  • Member Post (55)
  • Member Spotlight (18)
  • Networking (1)
  • News Release (4)
  • Non Profits (3)
  • Personal Finance (24)
  • Personal Health (18)
  • Ribbon Cutting (4)
  • Shop Local (1)
  • Talent Development (4)
  • Technology (1)
  • Uncategorized (4)
  • Volunteering (3)
  • What's Important Now (5)

Recent Posts

Jefferson County Moves to Level Blue Effective Friday, February 26

February 25, 2021 By Ryan Hecht

Member Spotlight: Namiko’s Sushi and Japanese Restaurant

February 25, 2021 By Ryan Hecht

What’s Important Now Podcast: What Employers Need To Know About Vaccinations, with Erin Lemmons, Eolas HR

February 24, 2021 By Ryan Hecht

arvadachamber_partner
Office Hours
Monday-Friday 9:00am-5:00pm
By appointment only

Arvada Chamber of Commerce
7305 Grandview Ave.
Arvada, CO 80002

Contact
Our phones are down at the moment. Please email a member of the team!

Like & Follow Our Updates

Recent Posts

Jefferson County Moves to Level Blue Effective Friday, February 26

Member Spotlight: Namiko’s Sushi and Japanese Restaurant

What’s Important Now Podcast: What Employers Need To Know About Vaccinations, with Erin Lemmons, Eolas HR

Featured Links

  • COVID-19 Resource Overview
  • Member Portal
  • Business IQ
  • Our Priorities
  • Blog
  • To Your Chamber Team

    Featured Sponsors

    PBSWM-225-sq-compressor
    sooperpms-225-sq-compressor
    COA_225_sq-compressor
    CES_225px_square-compressor
    ApexPRDLogo-225-sq-compressor
    AEDA-225-sq-compressor

    View our Privacy Policy