Life Kit Get your debt under control
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Apr 11, 2023 Stacey Vanek-Smith, NPR's global economics correspondent, dives into the complex world of debt. She discusses how life events like divorce and childcare costs can unexpectedly lead to financial strain. Stacey shares actionable strategies to tackle high-interest debts, such as negotiating better terms and prioritizing repayments efficiently. She highlights the importance of balancing debt management with saving for retirement, introducing methods like cash stuffing to improve budgeting. It's a practical guide for anyone looking to regain control of their finances.
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Prioritize High-Interest Debt
- Prioritize paying off high-interest debts, like credit cards, first.
- Interest significantly impacts the overall cost, so tackle it aggressively.
Negotiate Lower Interest Rates
- Negotiate lower interest rates with credit card companies.
- Leverage competitor offers or highlight your positive payment history to secure better terms.
Build Emergency Savings
- Build an emergency fund, even while paying off debt, to avoid future credit card reliance.
- Aim for a small cushion, such as $500, to cover unexpected expenses.