Home Debt Debt load: 6 tips for paying off personal loann debt

Debt load: 6 tips for paying off personal loann debt

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Jan. 24. Americans have hundreds of billions of dollars in personal loan debt, with North Carolinians taking on 2.78 percent more debt during the third quarter last year compared to the third quarter of 2022.

A new report from WalletHub says that’s the 10th largest percentage increase nationwide.

The average unsecured personal loan amount in North Carolina was $11,023 in Q3 2023.

The biggest increase: Montana, where residents added 31 percent more debt, reaching $12,817.

Of course, the smallest increase would be a decrease.

Alaskans reduced their debt by 11.47 percent, for a total of $10,308 during the third quarter of 2023.

Tips for Paying Off Personal Loan Debt

Budget wisely: Making a strict monthly budget, and cutting out unnecessary expenses, will help you ensure that you set aside enough money every month to cover your loan payments. If possible, you may even want to consider paying more than you’re required to each month, which will help you get out of debt sooner and pay less interest.

Set up automatic payments: Missing a loan payment is bad for your credit score, but setting up automatic payments prevents that from happening, assuming you have enough money in your bank account to cover the payment.

Prioritize high-interest debts: If you have multiple unsecured personal loans or debts, prioritize paying off those with the highest interest rates first. This strategy minimizes the overall interest you’ll pay, helping you save money in the long run. Make minimum payments on other debts while directing any extra funds toward the high-interest ones.

Explore debt consolidation options: You may want to consider using a debt consolidation loan or balance transfer credit card to combine multiple loans into a single balance with a lower interest rate. Doing this can simplify your payments and reduce overall interest costs. However, you’ll likely need to have at least good credit to qualify for the best options.

Generate additional income: Explore opportunities to increase your income. This could involve taking on a part-time job, freelancing, or selling items you no longer need. Supplementing your income provides extra funds that can be dedicated to paying off your unsecured personal loans more quickly.

Consider other debt solutions: If you’re really having trouble paying off your loans, you could consider asking your lender for temporary forbearance or a reduced interest rate. In more drastic situations, you could consider setting up a debt management plan or settling your debt if you’ve been delinquent on it for a while.

32 states had decreases in 3Q year-over-year debt

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