Managing debt
For many, using credit is a normal part of managing finances. For others, it can lead to overspending, stress, and long-term debt. Understanding your spending habits can help you stay in control and make confident financial decisions.
Build a smart debt strategy
Borrowing money can make sense—but it’s important to use it wisely.
Focus on long-term value
Try to borrow for things that provide lasting benefits, like education. Avoid using credit for expenses you can’t afford or don’t need.
Use credit cards wisely
Having a clear strategy for using credit cards can help you avoid unnecessary debt.
Spend within your means
Only charge what you can afford to pay back.
Pay off your balance
Try to pay your full balance each month to avoid interest charges.
Choose the right card
Look for a balance of rates, fees, and benefits that fit your habits. If you carry a balance, a lower interest rate may be more important than rewards.
Limit temptation
If credit cards lead to overspending, consider using cash or prepaid options instead.
Consider consolidating debt
If you have higher-interest credit card balances, consolidating with a personal loan may help.
Simplify your payments
Combining debts into one loan can make them easier to manage.
Lower your interest
You may be able to reduce the amount you pay in interest over time.
Compare your options carefully
If you’re thinking about consolidating or refinancing, it’s important to understand your options.
Review interest rates
Look for opportunities to replace higher-rate debt with lower-rate options.
Watch for teaser rates
Introductory rates may increase over time, so read the fine print.
Consider home equity carefully
Using home equity may lower your rate, but it also puts your home at risk if you can’t repay.
Include major expenses in your plan
Some types of debt, like mortgages, play a large role in your financial picture.
Review your mortgage
If your budget is tight, refinancing could help lower your monthly payment depending on your situation.
Talk to a professional
A knowledgeable advisor can help you understand the pros and cons before making changes.
Get help early
If managing debt becomes difficult, taking action early can make a big difference.
Stop adding new debt
Pause credit card use to avoid making the situation worse.
Talk to your creditors
Many lenders are willing to work with you if you reach out and explain your situation.
Avoid overdrafts and bounced checks
These can add fees and negatively impact how lenders view your financial habits.
Be cautious of quick fixes
Avoid companies that promise to “fix” your credit for a fee. Look for reputable, nonprofit organizations if you need help.
We can help
If you have questions about your debt or want help exploring your options, we’re here to help you take the next step.
Call 1‑800‑288‑3425, send us a secure message in Think Online, or visit any Think Bank branch.