Pay off all debt, except your house
Now that you've saved $1,000 for emergencies and if you're maximizing your company's 401(k)/403(b) match, it’s time to kick your debt to the curb.
1. Create or update your budget.
Budget your way to a debt-free lifestyle and see where and how you can adjust your spending.
Compare your monthly expenses to your balances and determine how much money you can use to attack your debt.
Always make more than the minimum monthly payments to accelerate your debt-free payoff date.Learn More about Goals and Budgets Setup Goals and Budgets This is the native App
2. Pay off your debt faster with the debt snowball method.
This includes unsecured debt, like credit cards, consolidation loans, and student loans.
Use our free debt snowball calculator to see how quickly you can gain momentum to destroy your debt.
Instead of taking the highest balance head on, pay off the smallest balance first. When your smallest balance is paid off, start making payments toward your next lowest balance, and keep repeating until all your debt is paid off.
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations, and financial situation. The calculations provided should not be construed as financial, legal, or tax advice. In addition, such information should not be relied upon as the only source of information.
3. Round up your debit card purchases to help pay down loan balances.
Use an automated debit card round-up program, like Change it Up, to help you pay down your loan balances faster.
Available for free with a FAIRWINDS Freedom Spending or Checking Account, each purchase you make with a FAIRWINDS Visa® Debit Card will automatically round up to the nearest dollar.
The difference will deposit directly into your FAIRWINDS loan account as a principal payment toward a new or used auto loan, personal loan, or RV.Learn More about Change it Up Set up Change it Up
4. Refinance your car loan to a shorter term.
Not only will you pay off your loan faster, you’ll save hundreds in interest.
Choosing a longer-term loan with a lower monthly payment might sound like an obvious choice, but a shorter term will save you hundreds of dollars in interest! The amount you save in interest, combined with owning and keeping your car faster? That’s another taste of financial freedom!Learn More about Refinancing your Auto Loan Learn More about Refinancing your Auto Loan
Pay off all debt, except your house - Milestone 3
“A few years back, I decided that I was going to work on becoming more financially stable and build up my savings account. I started working a part-time job along with my full-time to pay off my student loans. Thankfully I was able to pay off all of my loan debt. I used the extra money to pay off most of my credit debt down to increase my credit score and save more money in my savings account. Small changes have allowed me to pay off my car this year, contribute more to my 401(k) and pay off my credit cards. My goal is to eventually buy my dream home and use my current home for rental property.”
Dashaunda — Orlando, FL