--- title: "Shrink Your Debt: We Can Help You Make a Plan" description: By managing your credit card balances thoughtfully, you can shrink them faster and reduce what you pay in finance charges. image: https://go.hfcu.org/hubfs/images/mwisdom_blog/fall16_shrinkdebt.jpg --- [![MoneyWisdom_HFCU_r2](https://go.hfcu.org/hs-fs/hubfs/MoneyWisdom_HFCU_r2.png?width=464&name=MoneyWisdom_HFCU_r2.png "MoneyWisdom_HFCU_r2")](https://go.hfcu.org/blog) Filter by Category** - [Show All](https://go.hfcu.org/blog) - [Security](https://go.hfcu.org/blog/topic/security) - [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) - [Auto](https://go.hfcu.org/blog/topic/auto) - [Business](https://go.hfcu.org/blog/topic/business) - [Credit Score](https://go.hfcu.org/blog/topic/credit-score) - [Home](https://go.hfcu.org/blog/topic/home) - [Credit Cards](https://go.hfcu.org/blog/topic/credit-cards) - [Life Changes](https://go.hfcu.org/blog/topic/life-changes) - [Insurance](https://go.hfcu.org/blog/topic/insurance) - 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[Pets (1)](https://go.hfcu.org/blog/topic/pets) - [dormant account (1)](https://go.hfcu.org/blog/topic/dormant-account) - [inactive account (1)](https://go.hfcu.org/blog/topic/inactive-account) # Shrink Your Debt: We Can Help You Make a Plan ** [MoneyWisdom Newsletter](https://go.hfcu.org/blog/author/moneywisdom-newsletter) ** Oct 05, 2016 ![Planning to shrink debt](https://go.hfcu.org/hubfs/images/mwisdom_blog/fall16_shrinkdebt.jpg) There is no magic wand to *poof* away debt, and the [typical U.S. household carries ](https://www.nerdwallet.com/blog/average-credit-card-debt-household/#foot)[$6,829](https://www.nerdwallet.com/blog/average-credit-card-debt-household/#foot) in revolving credit card debt. However, by taking stock and managing your credit card balances thoughtfully, you can reduce your debt faster and cut down what you pay in interest and fees. First, you’ll need to answer some important questions about your finances. 1. **How much unsecured debt do you have? **The very first step in reducing your debt is understanding just how much you owe. Include credit card balances, medical debt, and personal loans. Can you see yourself paying it off in 5 years? 2. **What are your interest rates? **You could save by consolidating debt to one card with a consistent low rate. Plus, making just one payment guards against missing a due date and getting dinged with a late fee. Consult one of our member service representatives for a [free credit score review](https://www.hfcu.org/credit-report-and-score.html) first to learn how this could affect your score, and how improving your credit score can in turn [lower your interest rates](https://go.hfcu.org/blog/understand-the-interest-rate-on-your-credit-card). 3. **How did you accumulate the debt? **If overspending is an issue, address this first. Otherwise, you’re just shifting debt around and you could end up owing even more. Once you’ve established that your debt is manageable and you’re committed to paying it off, contact us to help you plan. You’ll learn the best moves to reduce your debt and boost your credit score. Next, work your plan until your debt is gone. Finally, stay committed to debt-free living by establishing an [emergency savings account](https://go.hfcu.org/blog/5-reasons-to-start-an-emergency-fund) and planning ahead for known expenses. [![See how consolidating debt can help you reduce costs](https://no-cache.hubspot.com/cta/default/118438/21e8f730-9031-4e5a-855b-3fd1baee94d1.png)](https://cta-redirect.hubspot.com/cta/redirect/118438/21e8f730-9031-4e5a-855b-3fd1baee94d1) ** [Personal Finance](https://go.hfcu.org/blog/topic/personal-finance) [** No More IOUs for You ](https://go.hfcu.org/blog/no-more-ious-for-you) [** Paper Checks a Pain? Use EasyDeposit for Fast Relief! ](https://go.hfcu.org/blog/paper-checks-use-easydeposit-for-fast-relief) ### About Author ![Default Author Image](https://cdn2.hubspot.net/hubfs/476360/Blog%20Template/Images/default-author-thumbnail.jpg) MoneyWisdom Newsletter Related Posts [![Navigating Financial Challenges After a Job Loss](https://go.hfcu.org/hubfs/iStock-1444494544.jpg) Navigating Financial Challenges After a Job Loss ](https://go.hfcu.org/blog/job-loss) [![Three Tips to Build a Financial Safety Net](https://go.hfcu.org/hubfs/2-2.png) Three Tips to Build a Financial Safety Net ](https://go.hfcu.org/blog/safety-net) [![Traveling this summer? 9 credit card tips to know](https://go.hfcu.org/hubfs/two%20women%20at%20cafe%20on%20vacation.png) Traveling this summer? 9 credit card tips to know ](https://go.hfcu.org/blog/traveling-this-summer-9-credit-card-tips-to-know) ** - [**](http://www.facebook.com/share.php?u=https://go.hfcu.org/blog/shrink-your-debt/) - [**](https://X.com/share?url=https://go.hfcu.org/blog/shrink-your-debt/) - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://go.hfcu.org/blog/shrink-your-debt/&summary=&source=CeBIT) ## You are Leaving Hanscom Federal Credit Union #### **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. 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Please consult the privacy disclosures on those linked sites for further information. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "MoneyWisdom Newsletter" }, "dateModified" : "January 20, 2022, 6:11:18 PM", "datePublished" : "2016-10-05 11:38:00", "description" : "By managing your credit card balances thoughtfully, you can shrink them faster and reduce what you pay in finance charges.", "headline" : "Shrink Your Debt: We Can Help You Make a Plan", "image" : { "@type" : "ImageObject", "url" : "http://cdn2.hubspot.net/hubfs/118438/images/mwisdom_blog/fall16_shrinkdebt.jpg" }, "mainEntityOfPage" : { "@id" : "https://go.hfcu.org/blog/shrink-your-debt", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://cdn2.hubspot.net/hubfs/118438/Logo%202.jpg" }, "name" : "Hanscom Federal Credit Union" } } ```