5 Tips to Balance Debt & Savings

two people reviewing finances

If you are struggling with debt, you are not alone. Millions of Americans carry some form of debt, whether it is from credit cards, student loans, or medical bills. One of the biggest struggles that come with overwhelming debt is not feeling like you can put money into your savings. However, there are ways you can work towards eliminating overwhelming debt and putting money aside into your savings account. Our team at Wadhwani & Shanfeld has put together tips to help you.

*Note, that although many COVID-19 provisions remain, many others might be ending soon. Get in touch with our team at Wadhwani & Shanfeld today to learn more about your options if you will be affected by COVID-19 provisions in the future.

#1: Create a Budget

The first step to take when trying to balance debt and savings is to set a budget. Determine what your regular income and expenses are so you can see where your money is going each month. Once you have a budget in place, you can begin working on allocating funds to debt repayment and savings goals.

#2: Make Debt Repayment a Priority

When you are trying to balance debt and savings, it is important to make debt repayment a priority. Begin by paying off the debts with the highest interest rates first. As you pay off each debt, you will have more money available to put towards savings goals.

#3: Automate Your Savings

One easy way to make sure you are saving money each month is to automate the process. Set up a direct deposit from your paycheck into a savings account. This way, you will never even see the money and it will be easier to reach your savings goals.

#4: Cut Back on Expenses

If you find that you are still struggling to balance debt and savings, it may be necessary to cut back on some of your expenses. Take a close look at your budget and see where you can make cuts. Even small changes can make a big difference in your monthly cash flow.

#5: Consider Debt Relief Options

If you are struggling to make ends meet each month, it may be time to consider filing for bankruptcy. An experienced bankruptcy attorney can help you understand your options and determine if bankruptcy is the right solution for your financial situation. Bankruptcy can eliminate many types of debt, giving you a fresh start financially. Contact a bankruptcy attorney today to learn more about how bankruptcy can help you achieve a balanced debt-to-savings ratio.

If you want to learn more about your debt-relief options, contact our Los Angeles bankruptcy attorneys today at (800) 996-9932 to schedule a consultation!

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