7 tips on how to pay off debt and save at the same time.

Household debt in the U.S. continues to rise, led by an increase in credit card balances.¹ It can be challenging to pay off debt and save at the same time, but it is possible. Here are some tips to help you get started:

1. Create a budget. 

This is the first step to understanding your income and expenses, and where your money is going. Once you have a budget, you can start to identify areas where you can cut back.

2. Prioritize your debts. 

Not all debts are created equal. Some debts, such as credit cards, have high interest rates, while others, such as student loans, may have lower interest rates. Make a list of all of your debts, including the interest rate and minimum payment for each. Then, prioritize your debts, paying off the highest interest debts first.

3. Make more than the minimum payment on your debts. 

If you can only make the minimum payment on your debts, it will take you longer to pay them off and you'll end up paying more in interest. Try to make more than the minimum payment on your debts each month, even if it's just a little bit extra.

4. Consider debt consolidation. 

If you have multiple debts with high interest rates, you may want to consider debt consolidation. This involves taking out a new loan to pay off all of your existing debts. If you can get a lower interest rate on the new loan, you can save money on interest and make it easier to manage your monthly payments.

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