Some financial experts suggest you pay off credit card debt starting with the smallest balance first. This shows you immediate success and helps create momentum.

Other experts recommend paying off credit cards with the highest interest rate first — which saves you money in accrued interest. Either way, the goal is to make strides toward paying off your credit cards. While it may seem strange to call your credit card company asking for a lower interest rate, sometimes it actually works.

No company wants to lose your business, so certain lenders will lower your interest rate to keep you as a customer. Paying off your credit cards is no easy feat. However, it is possible to reduce credit card debt when you make smart choices with your money. Log in. All vehicle insurance.

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Tips to start and protect your business. Business solutions center Tips to start and protect your business. Solutions to help manage your risk. Loss control Solutions to help manage your risk. If your debt feels overwhelming, it's worth taking an honest look at what you're spending each month.

Are there expenses you can cut back on or eliminate? Part of reducing your debt is limiting the additional debt you take on. Once you've consolidated, determine how much you have to pay each month by noting the minimum payments and put the total into your budget Opens pdf. If the amount is more than you can manage in your budget, you may need to contact lenders to see about arranging different terms.

Once you have the baseline of how much you have to pay each month in your budget, determine how much extra from your budget you can devote to debt reduction. Hopefully, those expenses you reduced give you a little more discretionary money to put toward this goal.

How you attack your debt is up to you. The two most popular strategies are to pay off balances with the highest interest rates first or to pay off the lowest balances first. The former will save you more money over the long run, but the latter can help you keep momentum and see progress.

Either way, you're taking steps in the right direction, so stick with your plan! TIAA does not provide tax or legal advice. This piece is being provided for educational purposes only and does not constitute a recommendation or advice.

You should carefully consider your unique circumstances before making any decisions regarding your student loans. My Account Retire Invest Learn About TIAA Enroll Open an IRA My Account Login.

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Be honest about your spending Determine how much you have to pay Figure out how much extra you can budget

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Debt reduction tips - Look for opportunities to consolidate Be honest about your spending Determine how much you have to pay Figure out how much extra you can budget

All property insurance. Related tasks Find an agent Renters insurance FAQ Property insurance FAQ Home financing Renters discounts All insurance. Bundle your property and auto insurance.

Combine and save Bundle your property and auto insurance. Repair or replace items. Brand New Belongings Repair or replace items. What you need to know. Buying your first home What you need to know. All personal insurance. Personal Products Life insurance Term life Whole life Pet insurance Dental Umbrella Identity theft Travel.

Related links Find an agent Pet insurance FAQ Travel insurance FAQ Personal loans All insurance. dog-outline Get a no-obligation pet insurance quote.

Protect your pet Get a no-obligation pet insurance quote. Cover your future care costs. Long-term care Cover your future care costs. Protect your personal data. Cyber protection services Protect your personal data. Get smart vacation-planning tips.

Make time to travel Get smart vacation-planning tips. All business insurance. Employee Benefits Employee retirement plans Group benefits Key person benefits Medical stop loss MedPair supplemental health See products Related Tasks Find an agent Find a farm agent Business claims FAQ.

Tips to start and protect your business. Business solutions center Tips to start and protect your business. Solutions to help manage your risk. Loss control Solutions to help manage your risk. Topics for farmers and agribusiness operators.

Ag insight center Topics for farmers and agribusiness operators. Read helpful business insurance tips. Here are a few steps to take when getting out of debt. All that belt-tightening might not sound like fun, but you can accelerate your financial recovery.

These steps should also allow you to reward yourself with an occasional night out or round of golf. His interest in sports has waned some, but he is as passionate as ever about not reaching for his wallet.

Bill can be reached at [email protected]. Advertiser Disclosure. Updated: November 16, Bill Fay. There are three truths to debt: Getting into it can be fun. Getting out of it is not. Mistake 1: Not changing your spending habits. Find cheaper alternatives. Make a shopping list before going to the grocery store and stick to it.

Try to survive without the latest iPhone and three or four streaming services. Eat in more often. Mistake 2: Trying to dig out of debt alone. Mistake 3: Signing up for an Illegitimate Debt Relief Program. Mistake 4: Not creating a practical budget. Mistake 5: Trying to pay off multiple debts at once.

Mistake 6: Closing accounts when they are paid off. Follow through with the first urge. The second one will actually hamper your financial recovery. Unless the card has a ridiculous annual fee, keep it.

Mistake 7: Borrowing from or ending contributions to a k. Mistake 8: Not setting aside emergency savings. Mistake 9: Not verifying your credit report is correct.

Mistake Not prioritizing your debt. Mistake Not transferring your balance to better credit cards. Best Way to Get Out of Debt Now you know mistakes to avoid. Check your budget — There always are areas where you can shave a few dollars free and create extra cash to apply to the debt?

Keep one in your wallet for bonafide emergencies. Pay for everything else in cash. Impulse buying almost disappears when you pay everything with cash.

Go shopping with a list — A grocery store or shopping mall is a dangerous place when all you take is a credit card. Make a list of what you want. Only buy what is on the list. Get in, get out. Even Spam looks tempting on an empty stomach. You spend less on rent, less on food, less on utilities, less on cable and even less on transportation.

In most cases, the savings generated by splitting costs will be enough to drastically reduce your debt by itself.

Can you mow the yard and clean the house yourself? How about exercising without a gym membership? Get some help — If you are still flummoxed by debt, find a nonprofit credit counseling agency online and go through one of their free credit counseling sessions.

They help you sort out your problem; they help you set up an affordable budget; and they advise you on which debt-relief option best suits your situation. The counselors are trained and certified. How to Pay Off Debt Faster All that belt-tightening might not sound like fun, but you can accelerate your financial recovery.

Generate more income — There were almost 5 million more job openings than available workers in January , according to the Bureau of Labor Statistics. Late fees are a gold mine for credit card companies, landlords and banks. Some potential benefits of consolidating your debt include:. Shortening the time it takes to pay off your debt.

Each lender sets its own requirements, but generally scores of or higher count as good credit scores. And keeping track of the money you have coming and going is always a good idea, no matter your financial goals. For example, being neurodiverse can come with unique financial challenges.

Use technology to make things easier: Technology can make budgeting easier by letting you keep track of all of your financial accounts, categorize your expenses and automate your payments. There are also several budget apps to help you stay on top of your money. Finding ways to reduce your monthly bills can help to free up more money to put toward debt payoff.

And every little bit counts. You may also be able to negotiate your bills for things like your car insurance, credit cards, gym memberships and cable service.

Switching providers might get you a better deal. If you have the ability, making more money even in the short term can boost your debt repayment plan. Consider getting a part-time job, selling gently used or unused items or using your skills to do freelance work.

A side hustle like house sitting, driving for Uber or Lyft or even dog walking can fuel your progress. Research and preparation may help you negotiate more money at your current job. Debt management typically involves working with an accredited counseling agency to pay off your debt at reduced interest rates or with waived fees.

Bankruptcy — Chapter 7 and Chapter 13 are the two most common forms — involves either erasing most unsecured debt or being placed on a court-approved repayment plan for three to five years.

You can try settling debt on your own by contacting creditors or you can hire a company to do it for you. On a similar note

Debt reduction tips - Look for opportunities to consolidate Be honest about your spending Determine how much you have to pay Figure out how much extra you can budget

Are there expenses you can cut back on or eliminate? Part of reducing your debt is limiting the additional debt you take on. Once you've consolidated, determine how much you have to pay each month by noting the minimum payments and put the total into your budget Opens pdf.

If the amount is more than you can manage in your budget, you may need to contact lenders to see about arranging different terms. Once you have the baseline of how much you have to pay each month in your budget, determine how much extra from your budget you can devote to debt reduction.

Hopefully, those expenses you reduced give you a little more discretionary money to put toward this goal. How you attack your debt is up to you. The two most popular strategies are to pay off balances with the highest interest rates first or to pay off the lowest balances first.

The former will save you more money over the long run, but the latter can help you keep momentum and see progress. Either way, you're taking steps in the right direction, so stick with your plan!

TIAA does not provide tax or legal advice. This piece is being provided for educational purposes only and does not constitute a recommendation or advice. You should carefully consider your unique circumstances before making any decisions regarding your student loans. My Account Retire Invest Learn About TIAA Enroll Open an IRA My Account Login.

Back to main menu. Our products Retirement plans Retirement annuities Guaranteed lifetime income Variable lifetime income IRAs Rollover Personal annuities Target date funds See all retirement products. Tools Retirement income tools Retirement advisor Early withdrawal calculator See all tools.

Our Products Retirement annuities IRAs Mutual funds Responsible investing Brokerage accounts Managed accounts education savings Health Savings Accounts HSAs See all investment products. Resources Partner with a financial professional Investing Daily performance watchlist Investment performance Life insurance performance Market insights.

Tools See all tools. The goal is to get rid it as soon as possible. You keep on making the minimum payments on all of your debts, and you put any extra funds you have toward paying off the smallest debt. This will help you pay it off sooner. Understanding what you owe, and when, will help you manage your debt.

You can use a bill calendar to keep all your information in one place as you tackle your debt. Keeping track of your monthly expenses can help put you one step closer to reaching your goals. The "Get a Handle on Debt" series gives you tools to manage your debt by budgeting smarter , paying your bills on time , tracking your spending , paying down existing debts, and earning extra income.

You can also get money management strategies sent directly to your inbox by signing up for our "Get a Handle on Debt" boot camp. Sign up for the latest financial tips and information right to your inbox.

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