How to Manage Debt as Interest Rates Rise
- Better Borrowing
- Frontwave Credit Union
1. Know Your DebtThe first step to crushing your debt is to know what you are dealing with. How much do you owe, what interest rates are you paying, and when are your payments due? You can use our financial calculator to see how much interest you will pay over time and how long it will take you to get out of debt. This will help you prioritize your debt and make a realistic budget.
2. Pay More Than the MinimumIf you can, try to pay more than the minimum amount due on your debt every month. This will help you lower your balance faster and save you money on interest in the long run. You can use the debt snowball method or the debt avalanche method to decide which debt to pay off first. The debt snowball method is where you pay off the smallest debt first, while the debt avalanche method is where you pay off the highest interest-rate debt first. Both methods can help you feel more motivated and confident as you see your debt go down.
3. Refinance Your DebtAnother way to tackle your debt even when interest rates go up is to refinance your debt to a lower interest rate. This can help you lower your monthly payments and save money on interest over time. You can refinance your debt by transferring your credit card balances to a lower-interest-rate card, consolidating your debt into a personal loan, or refinancing your mortgage or auto loan. But before you refinance your debt, make sure you compare the fees and terms of the new loan with your current loan and see if it’s the right fit for you.
If you need some help with your debt, you can always count on Frontwave. We’ve been serving our members since 1952, and have evolved with the times to offer the best products and services for your financial needs. We offer low interest rate credit cards, personal loans, and financial counseling to help you get out of debt and make your financial dreams come true.
4. Get Help From Frontwave
Managing your debt even when interest rates go up can be tough, but it’s not impossible. By following these tips, you can take charge of your debt and reduce the stress and anxiety that comes with it. Remember, Frontwave is here to support you every step of the way. Give us a buzz at 800.736.4500 or swing by a local branch for a free financial checkup!