Get organized around your debt

Get organized around your debt

RICHMOND, Va. (WWBT) - January is the perfect time to look at where you want to be financially by the end of 2021

You can start by thinking about your priorities financially and as a family, what do you value and map it out.

For most of us, that means tackling debt right away.

Cherry Dale a financial coach with the Virginia Credit Union says you have to have a plan. You can’t go into this blind.

“Separate yourself emotionally because you can get overwhelmed by that. But, once you sit down find out how much debt you actually owe, what the interest rate is,” Dale said.

Once you have it all written down, how much you owe and the interest rates, Dale says to rate the debt in order of importance to pay off. She says there’s good debt and bad debt.

Bad debt is pay day loans or credit cards. Dale says you want to tackle that first.

Then she says move on to your car loan and student loans.

Good debt is anything where you build equity or it enhances your life like a mortgage. That’s the lowest priority.

Lastly, Dale says meet with your family. You want everyone on the same page on what needs to be paid off first and how to get there.

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