Brooke Barley
May 29, 2024
Consider a Balance Transfer
If your main debt is credit cards, Anthony DeLuca, CFP, CDFA and expert contributor at Annuity.org, suggested transferring your balance.
“This is a process where you move credit card debt from one card to another, often with a 0% introductory APR,” he explained. “Now, you can focus on excess cash paying off the principal debt while having a little left over for summer enjoyment [i.e.] money that would have needed to go into interest payments.”
A recent GOBankingRates survey reveals that 41% of nearly 1,000 American adults plan to build their wealth this summer by paying off debt. Contrary to the notion that this requires a total halt on fun activities, financial experts suggest ways to manage debt while still enjoying summer. Key strategies include:
Automate Your Debt Payments: Kevin Guarino recommends setting up automatic payments from your paycheck to ensure consistency and avoid forgetting.
Consider a Balance Transfer: Anthony DeLuca advises transferring credit card debt to another card with a 0% introductory APR. “Now, you can focus on excess cash paying off the principal debt while having a little left over for summer enjoyment.”
Start a ‘Sinking Fund’: Mark Pierce suggests allocating money monthly towards both summer goals and debt repayment, integrating fun into the budget.
Open a High-Yield Savings Account for Summer Fun: Danielle Desir Corbett recommends saving a small, manageable amount each pay period in a high-yield savings account to earn extra interest.
Look for Cheap or Free Activities: Experts like Corbett and Todd Stearn highlight numerous low-cost activities like local concerts, festivals, and outdoor adventures.
Become an Uber or Lyft Driver: DeLuca notes this as a flexible way to earn extra money, suggesting, “If you keep your locations centrally located, you’ll reduce gas costs and make good money, fast.”
Stay With Family and Friends When Traveling: Brian Preston advises staying with loved ones to save on lodging and traveling with them to split costs.
These strategies enable individuals to balance debt repayment with enjoyable summer activities.