Now that the gift-buying season has passed, it’s time to focus on your finances. The thought of paying off debt can sometimes feel overwhelming. But taking small steps toward your goal can be liberating, and bring peace of mind. Don’t know where to begin? Here are a few steps to help you get started:

Prioritize your Debt

Not all debt is bad, and some are investments, such as your home, or a college degree. Focus on the debts that carry highest interest rates, and develop a plan to pay these bills off first.

Ask for an Interest Rate Reduction

Contact the credit card company and to tell them about your commitment to reduce debt, and ask if they would be willing to lower your interest rates.

Pay Twice a Month

Credit card interest accrues daily. Therefore, paying the same amount each month, but more frequently, will reduce the amount of money you pay over time.

Cut Back on Your Expenses

Look for ways to cut back and eliminate the recurring charges that are accumulating on your credit card bill each month.

Put Your Tax Return to Work

While it’s tempting to use the money from a large tax refund to make a big purchase, or take a vacation, remember, you also deserve the peace of mind that comes from living debt free.

With these tips in mind, you will be well on your way to living without the burden of unnecessary debt. Don’t to forget to contact your Cole Harrison agent to ensure you have the right coverage at the right price.

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