From Thanksgiving to the 30th anniversary of the Martin Luther King Jr. federal holiday, we’re officially spent. Now it’s time to recover from the holiday hangover and get back on the financial track. Here are three tips from Wells Fargo on how to make it happen.
- Pay more than the minimum. Pay off your debt and save significantly on interest by paying more than the minimum every month.
- Make a payment every two weeks. If you pay half of your monthly bill every two weeks instead of the full amount once a month, you’ll make one extra full payment over the course of a year and you could pay your debt off faster. Make sure to ask if your lender applies these partial payments to your principal.
- Pay off your most expensive loan first. Your most expensive loan is the loan with the highest interest rate. By paying it off first, you’re reducing the overall amount of interest you pay and decreasing your overall debt. Then, continue paying down debts with the next highest interest rates to save on your overall cost. Set up automatic payments. Stay on top of your debt by setting up automatic transfers — simply select the date, the amount, and the debt you’d like to pay off.
For more tips, visit WellsFargo.com.