Don’t let debt derail your retirement. We can help you stay on track.

Frustrated man looking at financialsJust about everybody carries some debt. Some debt can be beneficial, such as a mortgage that may provide tax deductions. But other debt can be financially crippling, such as running up high-interest credit card balances.

If you have too much debt, it’s preventing you from saving enough for your retirement. The Investor Guidance Center5 at CUNA Mutual Group suggests you follow these steps to eliminate debt — particularly debt that can become overwhelming.

List your credit card debts from highest to lowest interest rate, including balances. If you have an excellent credit score, or if you’ve improved your score, call your credit card issuers to see if you can qualify for a lower rate that saves you money.

Create an efficient strategy to pay down debt. If your debts’ interest rates differ, pay off the highest rate first, to reduce your debt faster. If the interest rates are about the same, pay off smaller balances first, which can provide an emotional lift and keep you motivated.

Pay the minimum monthly payment on all debts — except the one you’re targeting. Every month, put any extra funds toward the targeted account. Try to pay it off as quickly as possible. Then move on to your next debt target.

Repeat until your debt disappears. Eliminating unnecessary debt builds wealth, helps you save for future retirement, and allows you to achieve financial independence sooner.

The moral, of course, is don’t let mounting debt put you in a downward spiral. If you’re already in too far, take immediate steps to reduce your debt.

For guidance on retirement or financial planning, call the Investor Guidance Center* at CUNA Mutual Group: 888.888.3940. Allsteel Credit Union is proud to collaborate with CUNA Mutual Group, an insurance and financial-services provider for credit unions and their members.

*Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-1937549.1-1117-1219

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