If you have debt that feels overwhelming, you can regain control.

First, know what you owe. List all balances from mortgages, auto loans, medical bills and credit cards, and divide that total by your gross income. Aim for less than 35% with a mortgage or 20% without.

Second, look to lower or simplify your debt by refinancing at lower rates, consolidating multiple debts or transferring high-interest balances to lower-rate cards.

Third, determine how much extra you can pay to bring down the debt. Calculate how much is left after paying essential expenses and minimum payments. If need be, consider freeing up money by cutting spending, such as dining out or shopping for nonessentials.

Finally, decide which balances to pay off first and which will stay at minimums until their turn. Many people start with the highest interest rate; others choose the smallest balance for quick wins.

By building a clear strategy, you can turn debt repayment into a manageable goal.

This content was provided by Edward Jones for use by your local Edward Jones Financial Advisor, Casey A. Caliva, CFP®, AAMS®, at Historical 30th & Fern. 

Member SIPC

Address:  2222 Fern St., San Diego CA 92104
Phone:  619-516-2744

Web: www.edwardjones.com/casey-caliva