#CreditChatWednesdays | 3 p.m. ET

How to Strategically Manage Debt

Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we discussed how to manage and pay off debt.“

Check out all video and resources shared:

bit.ly/manage-debt

Featuring: Dr. Scott Rick @scottianrickUniversity of Michigan’s Ross School of Business

Wednesdays | 3 p.m. ET#CreditChat

Why is it easy to fall into debt?What kinds of debts?

Some fall into debt because of an emergency or loss of income,but for many it’s just spending more than they earn.

Tweet by @magnify_money

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A lot of people fall into debt via impulse spending and

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not having a plan to pay off credit cards.Tweet by @moneycrashers

Tweet by @csmithraleigh

is a bad recipe for financial progress

Instant gratification plus a lack of awareness

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Tweet by @scottianrick

Inability to resist temptation is intuitive response.

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But there are other sources: medical bills, mismanaging bills.

It’s easy to fall into debt without a budget because

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we don’t know how much we’re spending and if we’re living within our means Tweet by @mymoneycoach_ca

Tweet by @ACCC_Helps

A lack of education about credit and credit terms

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can cause serious financial problems.

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If you don’t establish good financial habits early on, you can fall into debt easily. Tweet by @Quizzle

Tweet by @GarrettPlanning

“Optimism” is one of the reasons I see people fall into debt.Tomorrow/next year I’ll have extra cash.

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Tweet by @GraceKvantas

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Debt issues can occur at all income levels, not just in low income households.

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What are pros/cons of using credit cards?Why can cards lead to debt?

Tweet by @scottianrick

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Credit cards are less painful to use than cash, encouraging debt. Repaying debt from forgotten purchases is painful.

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People need to understand their personality types before getting a credit card.

Tweet by @magnify_money

Don’t use if you are an impulsive indulger!

Tweet by @Quizzle

Credit Cards help you establish credit. Good use can increase your score,

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but if you’re not responsible it will do the opposite.

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Tweet by @MyMoneyCoach_ca

Sticking to cash is a good way to manage your money and ensure you live within your means.

Tweet by @GarrettPlanning

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Credit cards are convenience tools - not for long-term financing.

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How to do you choose what credit cardor loan to pay down first?

Tweet by @ReadyForZero

We think focusing on the highest interest (and therefore most costly)

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debt first. Stick to debt avalanche method.

Take into account both the highest interest and highest balance

Tweet by @LeslieHTayneEsq

when paying off credit cards and loans!

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Tweet by @GerriDetweiler

Pay down debt by having an overall financial game plan.

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What advice do you have for paying down credit cards faster?

Target one credit card account and pay minimum on others. When paid off, roll over that payment to new target account until debt free.

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Tweet by @ReadyForZero

Tweet by @MomCentsPF

If you have a good payment track record, ask for a lower interest rate.

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I understand the urge to pay off individual debts,

Tweet by @scottianrick

but you’ll be better off if you can focus on debt with highest APR.

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Tweet by @YesIamCheap

Never pay only the minimum! Look at the payment schedule

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on your statements to see how long it will take to pay it off.

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How can we stay motivated tokeep paying off debt?

Tweet by @MoneyCrashers

Automate credit card payments to coincide with your paycheck.

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Tweet by @ACCC_helps

Reach out to a reputable nonprofit credit counseling agency to get free advice on how to best attack your debt.

Tweet by @Frostbe

Set goals and check them off as you achieve them.

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If you got in debt as a couple, work together to get out.

Tweet by @GerriDetweiler

Don’t be afraid to reach out for help (aka credit counseling agency).

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Check out all the resources and tips shared:

bit.ly/manage-debt

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