7 Tips to Help You Get Out of Debt

Living with debt can feel overwhelming, impacting both your financial stability and peace of mind. But with the right mindset and tools, financial freedom is within reach.
Here are practical steps and proven strategies to help you break the cycle of debt and take control of your financial future:

1. Pay More Than the Minimum
Making just the minimum payment might keep your account in good standing, but it won’t do much to reduce your debt. Even a small additional payment each month can go a long way in lowering your balance and cutting down on interest. Aim to double your minimum if you can—but even an extra $25 or $50 makes a difference over time.

2. Make Payments More Often
Instead of waiting for your due date, consider making multiple smaller payments throughout the month, especially on credit cards. This can help you reduce your balance faster and keep your credit utilization low—an important factor in your credit score.

3. Focus on High-Interest Debt First
Use the avalanche method: pay off the debt with the highest interest rate first (often credit cards), while continuing minimum payments on others. This strategy minimizes the total interest you’ll pay and accelerates your path to being debt-free.

4. Or Try the Snowball Method
Prefer a quick win? Start with your smallest balance and work your way up. This “snowball” method builds momentum and boosts motivation with early payoffs, making it easier to stay committed for the long haul.

5. Use Digital Tools to Stay on Track
Take advantage of online banking tools like automatic payments, balance alerts, and budgeting apps. These can help you manage your payments, avoid late fees, and stay organized as you work toward your goals.

6. Consider Refinancing
If you have a good credit history, you might be able to refinance a loan to secure a lower interest rate or shorter term. While your monthly payment may increase, you’ll pay off the loan faster and potentially save on interest.

7. Consolidate Debt
Consolidating multiple credit card balances or loans into a single, lower-interest loan can simplify your payments and reduce your interest burden. Just make sure to read the fine print—introductory rates may rise over time, so make the most of that window.

Need Help? We’re Here for You
Every financial journey is unique. If you have questions or want personalized advice, WaterStone Bank is here to help. Stop by your local branch or visit us online to learn more about how we can support your debt-free goals.