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Getting out of debt

GOOD ADVICE ON HOW TO USE YOUR TAX REFUND AND HOW TO GET OUT OF DEBT

COLUMBUS, Ga. - Many people are breathing a little easier since the tax deadline has passed and some of those same people are anxiously awaiting a refund from Uncle Sam.

So what should you do with that money when it comes in?

I recently spoke with a local financial expert who has some advice on how to make your refund work 
for you and how to pay off debt in the process. 

Joining us today is Mark Littleton, the President and CEO of Kinetic Credit Union. 

People are getting refunds in the mail now that tax season is here.  What do you advise people should do instead of going out and spending it? What do you recommend?

Mark Littleton, President and CEO, Kinetic Credit Union:  "When you get a lump sum of money, the thing you think about is, 'Oh, I've really been wanting this or I've really been wanting that.'  What we recommend is, number one, you want to save it all but also you want to at the least, take the larger percentage and save it.  Set aside some of it to purchase something you really need or want but save as much of that as possible so you can have that money longer.  That way later in the year if you need cash, you'll have it."

That sounds like good advice.  I know Americans have a lot of debt.  What is the strategy for someone getting out of debt?

Mark Littleton, President and CEO, Kinetic Credit Union:  "First, you try to avoid the debt and going back to the tax refund.  One thing to do is put that money in a certificate that's for a set term or even in a Money Market which is more liquid which means you can get the money out whenever you need it.  In terms of getting out of debt, you really need to figure out what your debt is.  How much that is and put a plan in place and start chipping away at it.  Whether, it can be a little bit each month, you have to be really disciplined and write out that plan of 'I'm going to pay this much each month so I know in whatever the term is, whether it's  a year or 3 years, I have it paid off." 

 I know it can be intimidating for people who face a lot of debt.  Where can people go to get more information on that? 

Mark Littleton, President and CEO, Kinetic Credit Union:  "You can visit the credit union.  We'd be happy to help you look at your debt situation and see what it is, and come up with a plan and tailor a plan for you.  There are also resources like the federal regulator, NCOA that has good  resources to help with debt management and paying off debt. As well as other online resources, you can also visit the credit union."

For more information on how to avoid debt and how to pay off debt, click here:  

https://www.ncua.gov/Pages/default.aspx


 


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