How NOT to Pay Off Your Debt! | Cleveland Bradley County Teachers Federal Credit Union

The team at Cleveland Bradley County Teachers Federal Credit Union knows how things can happen and debt just keeps on piling up. However, we also want you to know there is a way out of debt—it just might take a lot of work, motivation and willpower to get there. But when you’re considering strategies to pay off your debt, there are some things you should avoid.

What Not to Do When Trying to Pay Off Debt

The first thing you shouldn’t do when trying to pay off your debt is to only pay the minimum payment. If you only pay the minimum on every credit card payment, then you will pay off your debt—but you will do so in the slowest way possible. And not only that, but you will also be spending so much more money in the process. Therefore, do what you can to put more than just the minimum payment toward at least one debt each month in order to pay it off faster.

It’s also not the right strategy to pay off your debt using your emergency fund. While it might seem like a good idea to use your savings account to take care of your debt, what if you do that and then a real emergency occurs? Where is the money going to come from to cover the unexpected expenses? Keep your money in savings and set aside another part of your budget to pay down debt.

Finally, never skip a mortgage payment when trying to pay off debt. While many people think this is a way to pay off debt, it is not—and it places you at risk of losing your home. Don’t risk the roof over your head in order to pay off debt when there are a number of other options!

Are you looking to consolidate your debt in order to pay it off faster? Visit the Cleveland Bradley County Teachers Federal Credit Union website to learn about our loan options.