Feeling stressed about money?
The start of a new year always seems like a great time to start fresh with your goals, whether they are financial, physical or professional goals. However, what if you can’t seem to shake the stress that comes with trying to reach your financial goals, when you have lingering debt?
First, take a deep breath.
Second, check out some considerations below for how to tackle your financial stress.
- List out your debts in order of smallest to largest. Whether you have two debts on your list or 20, remind yourself that you are taking the first step and you can do it. Be proud of yourself for taking the first step in recognizing how much debt you have.
- Choose a debt payoff method. Do you want to pay off the debt with the highest interest rate first, while also making minimum payments on the rest? This is the avalanche method. If you want to pay off the lowest balance first and then take that amount and roll it into the next debt amount, this is the snowball method. Whichever method you choose, remind yourself that this is going to help you reduce your debt!
- Create a budget. This is vital to any financial plan, whether you have debt or not. Set aside a specific amount that will go towards your debt payoff goal. When you dedicate a certain amount each month, this will also help you to project a timeline for when your debt will be paid off.
TIP: If you get motivated by visual cues, create or search for a debt payoff chart. As you pay down on your debt, color in your chart to help keep you motivated. Be sure to celebrate your hard work, just make sure to budget for it.
If you feel stressed from not knowing how you are going to reach your goals, let alone when, we encourage you to visit our financial wellness library for articles and videos on how to achieve financial wellness.
Visit our Financial Wellness Library today for more tips and tools on achieveing the life you envision.
This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.
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