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It is always a good time to refocus on your goals, whether they are financial, physical, or professional goals. However, what if you can’t seem to shake the stress of trying to reach your financial goals because of lingering debt?
First, take a deep breath.
Second, check out some considerations below for how you may begin to tackle your financial stress.
List out your debts in order of smallest to largest.
Whether you have two debts on your list or 20, remind yourself that you are taking the first step and you can do it. Be proud of yourself for taking the first step in recognizing how much debt you have.
Choose a debt payoff method.
There are a couple of commonly used debt payoff methods for you to consider.
- Debt Avalanche Method: This method prioritizes paying off debts with the highest interest rates first while also making minimum payments on the rest.
- Debt Snowball Method: This method focuses on paying off the smallest debt first, regardless of interest rate, and then taking that amount and rolling it into the next debt amount.
Whichever method you choose, remind yourself that this is going to help you address your debt!
Create a budget.
This is vital to any financial plan, whether you have debt or not. Set aside a specific amount that will go towards your debt payoff goal. When you dedicate a certain amount each month, this will also help you to project a timeline for when your debt will be paid off. Check out the Voya Budget Calculator and personalize your budget for your situation and priorities.
Work with a professional.
If you want more advice, you may decide to work with a financial professional. Working one-on-one with a professional may help you understand the steps you can take to help get on the right track.
If you participate in a retirement plan through the ABA Retirement Funds Program (“Program”), you have access to financial professionals from Voya Financial Advisors1 through the Program. Schedule your complimentary appointment by calling 844.253.8692.2
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Financial Professionals are Investment Advisor Representatives and Registered Representatives of and offer securities and investment advisory services through Voya Financial Advisors, Inc. (Member SIPC).
For more complex situations, your representative can design a complete financial plan for a fee of up to $1,500.
This material is provided for educational purposes only; it is not intended to provide legal, tax, or investment advice. All investments are subject to risk. Please consult an independent tax, legal, or financial professional for specific advice about your individual situation.
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