Show Me The Money: Tips on how to recover from debt

Local

There are a lot of people who are facing financial struggles during this pandemic.

It is especially important to avoid getting into debt during this time. If you’re facing issues with debt, we have some tips to help you recover.

Financial expert Chris Hogan helps people become debt-free. He says there are basic rules you need to follow.

  • Focus on what you can control
  • Have a plan for your money
  • Track your progress

He says it’s important to not only know where you’re starting, but to also have an end goal. And don’t put it off!

“People will tell me I’m going to wait until I’m making this and I’m going to get more serious.. I’m going to tell you no you won’t… if you won’t get serious right where you are right now, when you start making more all you’re going to do is spend more,” says Hogan.

Hogan suggests the snowball strategy for paying off debt, which means paying off the smallest debt first.

“So if you have two credit cards.. one that was $2000 and one that was $5000, you’d make the minimum payment on the $5000 but all extra money coming in is going to go toward that $2000 credit card, and once you pay that off you’re going to take what you were paying toward the $2000 card and now pay all of that towards the next credit card of $5000.”

As you start seeing bills disappear off of your list, you will gain emotional encouragement.

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