min read

Paying Off Significant Debt

Written by
Sterling Bank & Trust, FSB
Published on
March 12, 2024
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In today's fast-paced world, the dream of owning a home or attaining a quality education

often comes with a significant financial commitment. Whether it's managing student

loans or tackling a mortgage, the road to financial freedom may seem challenging, but

with a well-structured plan and a determined mindset, it's entirely achievable.

Here are some expert tips to guide you toward paying off major loans and securing your


● Create a Detailed Budget: Begin by assessing your monthly income and expenses.

Craft a detailed budget that accounts for all your financial commitments, from utility

bills to groceries. Allocate a portion of your income towards loan repayment.

● Prioritize High-Interest Debts: Start by targeting loans with the highest interest rates.

Allocating more funds towards these debts will save you money in the long run. As

you pay off each high-interest loan, redirect the extra funds toward the next one on

your list.

● Consider Refinancing or Consolidation: Investigate the possibility of refinancing your

mortgage or consolidating student loans.

● Set Realistic Goals: Break down your total debt into manageable milestones.

Celebrate each achievement along the way, whether it's paying off a specific

percentage of your mortgage or reducing a chunk of your student loans. These

mini-victories will keep you motivated.

● Build an Emergency Fund: Establishing an emergency fund ensures that unexpected

expenses won't derail your debt repayment journey. Having a safety net in place

helps you avoid accumulating more debt during challenging times.

You can explore additional resources through online platforms such as Mint, You Need A

Budget (YNAB), or Goodbudget for supplementary insights.

Learn More About Sterling

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