Debt is money you owe. It’s not that being in debt is a new idea or even a bad one. Debt allows us to buy homes and cars, send kids to college, and have things in the present that we can pay for in the future.
However, being in debt can be an overwhelming. There are smart, proven ways to manage your debt and MMFCU can help.
Start with these three steps.
1. Calculate & Track Your Debts
The first step in managing and reducing your debt is to make a list of who you owe money to and how much you owe them. Use this Debt Log. Debt includes rent-to-own arrangements, credit cards, payday loans, student loans, and mortgages. The total amount you borrowed is your debt. There are other kinds of debt besides loans. For instance, your monthly electric bill isn’t a debt, but if you're past due on your bill, that amount and any fees become debt. You can gather this information from your free credit report, bills, and loan statements.
2. Reduce Your Debt by Consolidating or Refinancing to a Lower Interest Rate
Rates are very low, through consolidation and refinancing you may be able to lower your monthly obligations and simplify your debt payments. Refinancing a mortgage or auto loan that is even just a few years old can make a big difference. You can also consolidate debt into a personal or home equity loan. Call MMFCU, we can help you determine if lower interest rate options are available.
3. You Make Lower Payments
Once you consolidate or refinance your monthly obligation will be less than it is now — making your debt easier to manage.
Paying down debt now frees up money in the future to spend and invest.
The feelings associated with being in excessive debt can be overwhelming.
It is a feeling that is all-consuming and oftentimes alienating. We’re here to tell you that you don’t have to feel alone. Mid Minnesota Federal Credit Union works in partnership with Lutheran Social Services to provide members a financial counseling service, free of charge, to help you get back on your feet.
LSS Financial Counseling Service provides safe, accredited service with certified financial counselors offering full-service financial counseling and financial education. With local offices throughout Minnesota, you can take comfort in a local and trusted organization. LSS counselors offer a variety of services to meet the needs of their clients, including budget and debt counseling, creation of a debt management plan and financial education.
By taking advantage of these free services you can take back your life and begin down a road of financial control. Counselors with LSS will help you develop a budget that you can live with, as well as an action plan to address your debt, all with a non-judgmental ear in a non-threatening environment.
The time is now. Find out, today, how LSS Financial Counseling can help you. For information or to make an appointment, visit www.lssmn.org/debt or call (888) 577-2227. Financial success belongs to all of us; and at Mid Minnesota Federal Credit Union, we continue to strive to provide the tools our members need to achieve that goal.
Sense and "Centsibility"
The official blog for LSS Financial Counseling
Making good financial decisions makes both sense and cents. Have you ever thought about what ‘financial freedom’ really looks like? And an even greater question…do you ever wonder how to get there?
This is something our friends at LSS Financial Counseling are always thinking about. LSS can help you achieve your financial goals and provide tools to help you conquer your debt. LSS has put together a team of writers who are experts on credit card debt, budgeting skills, improving credit scores, foreclosure prevention, bankruptcy alternatives, student loans, and preventing financial scams.
New topics are posted regularly to inspire change and encourage action. But, of course, what makes this blog exciting is YOU – so join the conversation!
Subscribe to the blog and take the first step in conquering your debt at - blog.conqueryourdebt.org.
Looking for a few more resources to help you get turned right-side-up? Look no further! Here you’ll find a variety of fact sheets, tips and financial worksheets. Find everything from overcoming debt and dealing with creditors to ideas for increasing your income. You can even download worksheets at no charge! Isn’t it time you control your finances and not the other way around?
Want to dig a little deeper? Good for you! Asking questions is smart! Review answers to some Frequently Asked Questions, all conveniently broken down by topic.