Make a Payment Rates About Careers Contact Locations

4 Strategies To Pay Off Debt Faster

January 10, 2018 Debt from the holidays putting a damper on your new year? Or maybe loan payments are holding you back from pursuing bigger financial goals? Try these tips to reduce your debt and restore your motivation to save.   1. Make biweekly payments
One popular strategy for accelerating debt repayment is to make biweekly payments every two weeks, each totalling half your monthly payment. An important note: this method will result in you making 26 payments each year, which is two more than you would make if you made a payment on the first day of the month and the middle of the month, so you will have to budget accordingly. The advantage is that you will reduce your amount owed at a faster rate and, thus, save on interest. Plus, a biweekly schedule can alleviate cash-flow concerns by distributing smaller payments more evenly throughout the month. Use our to see what your repayment schedule would look like. 2. Pay off loans with the highest interest rates first 
As a general rule, paying down debts with the highest interest rates should be your first priority. With this strategy, you’ll pay off debt faster and with less total interest in the long run. To make this happen, you can make the minimum payment on your other, lower-interest accounts. Then, once the loan with the highest interest rate is paid off, you apply the minimum monthly payment you would have spent on that loan to the loan with the next highest interest rate, and so on until you reach the end of the line and you’re debt free. Woot! 3. Alternatively, prioritize loans with the smallest total balance
Another repayment strategy you could try is the . The idea behind the debt snowball method is that you repay loans with the smallest total balance first and then redistribute the money you would have spent on those payments to your other, larger loans. Eliminating smaller debts quickly helps you stay motivated to continue paying off bigger debts and, if done properly, can lead to a faster repayment period and less total interest paid overall. 4. Pay it off in a lump sum
If you’re lucky enough to be starting the year with a nice bonus check burning a hole in your pocket, consider making one large payment toward your debt, be it a mortgage, auto loan or credit card debt. When you pay off debt, you are receiving a guaranteed return on your money – the amount of interest you would otherwise be paying on any outstanding balance. You’ll also want to keep this in mind for your tax return in April! Need help deciding how to make it happen? , and we'll help you figure out a debt repayment strategy that makes sense for your situation – whatever it may be. You might also be interested in Here are some tips on how to prioritize your debts and bills, negotiate with creditors and get your late payments back on solid ground. It’s not every day that someone gives you hundreds, or maybe even thousands, of dollars for (seemingly) no reason. That’s what makes getting a tax return so exciting. So before that much-anticipated check arrives, stop and consider what you should do with your tax refund, as well as what you want to do. So, you’ve got plans, but you’re not sure where to start? You’re not alone. Make your financial goals mean something with these tips from our very own President & CEO Kim Sponem. In a recent article in the Milwaukee Journal Sentinel, she said to be specific about your goals. We asked Kim to give examples of specific financial goals people can set. Debt from the holidays putting a damper on your new year? Or maybe loan payments are holding you back from pursuing bigger financial goals? Let’s face it, budgeting is no one’s favorite topic. But as we enter the new year with a fresh perspective and full of inspiration for the year ahead, you may realize that now is a great time to start fresh financially too. In this season of to-do lists, crazy traffic and the inevitable last-minute trip to the store for that “I can’t believe I forgot it” ingredient or gift, credit card bills are probably one of the last things you want to spend any mental energy on. It’s the most wonderful time of the year, but it’s often the most expensive. Between the gifts, food and festivities, it’s easy to get carried away with your spending and throw caution to the cold, December wind. But with a few smart tips, you can keep your budget in check and end the year on a high note. Tax return season is here, which means there’s a chance some extra cash is coming your way. Before you indulge in a tropical getaway or pre-order VIP concert tickets, take the time to responsibly consider your financial situation. That doesn’t mean you shouldn’t treat yourself—just make sure your spending is aligned with your financial goals. Tax return season is here! It’s officially time for lobster dinners, spa days and filling your virtual shopping bag, right? Not so fast. Before you start fulfilling your cash daydreams, take the time to fully vet your financial situation. It’s okay to spend it—just keep your financial wellness in mind when you do. Here are several ideas to make the most out of that lump-sum deposit this year and still have some fun along the way. Ready? Set? Spend! (Smartly.) Featured Products Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Certificates Checking Accounts Home Equity Loans Home Loans Business Banking Financial Education Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts Upcoming Events Programs Tools & Calculators On-demand Webinars Podcasts About Equity in Money™ About Summit Careers News Community Giving Equity in Money™ About Summit Careers News Community Giving Help & Support Contact Us Member Support Center Schedule an Appointment Find a Branch Contact Us Member Support Center Schedule an Appointment Find a Branch Please read the following before proceeding to: The website you are about to visit is solely the responsibility of the merchant or other party providing the site. The content of this third-party site, including materials and information, is solely the responsibility of the provider of the site. The Credit Union is not responsible for any such third-party content. Any transactions that you enter into with a vendor, merchant or other party that you access through this third-party site are solely between you and that vendor, merchant or other party. The Credit Union does not endorse the content contained in this third-party site, nor the organization publishing the site, and hereby disclaims any responsibility for such content. The Credit Union Privacy Policy does not apply to this third-party site, and for further information you should consult the privacy disclosures of the third-party site. NCUA Insurance Estimator Privacy, Security & Accessibility Rates, Fees, Terms & Disclosures Routing Number *  The Wisconsin's #1 Mortgage Lender designation is based on the number of loans in 2022, gathered from the Home Mortgage Disclosure Act data compiled annually by the Consumer Financial Protection Bureau. The results of the data were obtained through the LEI: 254900NTAC4H10MGSU23 **  SBA Lender of the Year Award for Credit Unions as awarded by the Small Business Administration of Wisconsin in 2023. Copyright 2024 © Summit Credit Union. All rights reserved. If you are using a screen reader and are having problems using this website, please call 608-243-5000 for assistance. Insured by NCUA