LifeMatters - Reducing Debt: A Key to Achieving Life Goals

Taking out a loan or using credit is sometimes necessary to achieve major life goals, such as buying a house or car, obtaining an education or making a major purchase. However, too much debt can quickly compound, potentially threatening both your short and long-term financial stability. If debt is becoming an emotional and financial drain, these tips may help: 

• Look at the big picture. List everything you owe and the interest rate attached to each. Total this debt (excluding a mortgage). Make a schedule for paying down balances, starting with the highest interest loan or card first.

• Consolidate or refinance. Consider transferring consumer debt to a lower balance credit card or taking out a consolidation loan. Before transferring debt, make sure you are clear on all fees and terms. Homeowners may want to refinance if the current mortgage if interest rate is lower than what they are currently paying.

• Create an emergency fund. Set aside a small amount of money in savings each month that can be used for emergency expenses (such as a car repair).

• Reduce spending. Cut back on little luxuries or impulse spending. Funnel the savings into an emergency fund or debt repayment.

• Put the credit cards away. Continuing to use credit will make it harder to whittle down existing balances. If you have automatic payments that must go on a credit card, pay the total amount in full every month.

• Access LifeMatters. LifeMatters offers a variety of options for reducing debt:
  

 LifeMatters Financial Consultation can help you get your finances back on track. We’re here to help! 

Monthly Features

Don’t forget to check out this month’s webinar along with LifeMatters’ monthly tip – both can be found on the dashboard on www.mylifematters.com, password: Danos1.

LifeMatters Services

If you, or someone in your family, are experiencing difficult times, please contact LifeMatters by phone, 1.800.634.6433, or text “Hello” to 61295 to be connected with a professional counselor.  Counselors are available to assist with emotional wellbeing, finances, and legal concerns.  This service is available 24/7/365.  LifeMatters also has a free app – go to your app store to download.

Contact Avie Fontenot, human resources project manager, with questions or feedback at avie.fontenot@danos.com or by phone at 985.219.3334.