Steps to manage your debt

Most people have some kind of debt, but that’s not necessarily a bad thing. In fact, some types of debt can be beneficial to your financial plan. When you borrow money to buy something that can grow in value over time, that could be considered “good debt,” such as a mortgage or a student loan. “Bad debt” can be considered things that quickly lose their value or carry a high interest rate, such as a car loan or a credit card balance.

Before you can start paying down your debt, you'll need to find some money. Create a budget to organize your finances so that you can set aside even more towards paying down your debt.

Next, you need to list out all of your debt including the balance and interest for each. Once you understand all of your debt, you can make a plan to prioritize it and start to pay it down. 

As you are working through your debt, be sure to continue saving for your financial future. Also make sure you revisit your budget over time to find new ways to cut your spending and pay off your debt faster.