Game On: Beat Debt Like a Pro

Congratulations! You’ve powered through Level 1: Setting Money Goals and Level 2: Budgeting with Darden Credit Union’s “Game to Get Fit” Financial Wellness series. Now, it’s time for the ultimate challenge, beating debt.

With March Madness in full swing, it’s time to play smart, strategize, and take the lead in your financial future. Just like in the game, every move counts, and smart decisions will get you closer to victory.

Know Your Opponent: Good Debt vs. Bad Debt
Not all debt is bad. It can be your ally in building wealth (think of it as your sixth man). Here’s how to tell good and bad apart:

• Good Debt: Student loans, mortgages, and business loans that help you build assets or skills that increase your value.
• Bad Debt: High-interest credit cards, payday loans, and impulsive purchases drain your finances without providing lasting value.

3 Strategies to Pay Off Debt Faster

To defeat debt, you need a solid strategy. Here are three strategies DCU members can use right now to pay down debt :

1. Try the Snowball Method
   Start by paying off your smallest debt first. Once it’s cleared, apply that payment amount to the next debt. This approach builds momentum and keeps you motivated with quick wins.
2. Use the Avalanche Method
   Focus on paying off the debt with the highest interest rate first. It may take longer to see progress, but you’ll save more money in the long run by reducing costly interest charges.
3. Make Extra Payments When You Can
   Adding even a little extra to your monthly payments can make a big difference. It’s a simple way to reduce your balance faster and pay less interest over time.

Choose the strategy that fits your style or combine them for even better results. The path to financial freedom starts with your first move!

Conquering Student Loan Debt

Student loans can seem like a lot, but they won’t hold you back forever. Start by picking a repayment plan that works for you, whether it’s standard, income-based, or refinancing for a better rate. Throw in a little extra cash when you can to knock down that principal faster. And if you’re eligible for forgiveness programs, be sure to apply.

Use Loans Wisely — Play Smart, Not Reckless
Loans can be power-ups when used responsibly:

• With Auto Loans, buy a vehicle that fits your budget rather than overextending yourself for luxury.
• Personal Loans are great tools for covering emergencies or consolidating high-interest debt. DCU has a limited-time special offer, Consolidate & Celebrate!
• When it comes to Mortgages, buying a home can be a smart investment just make sure the monthly payment fits your budget.

Final Score: You > Debt
It’s a battle, but you’ve got the tools and help you need at DCU to win. Remember, winning the game against debt isn’t about avoiding loans altogether. It’s about using debt to level up, not weigh you down.

Coming Next Month: Save Like a Pro

Get ready to flex your savings muscle. April is Financial Literacy Month, and we’re celebrating America Saves Week!

In our next Game to Get Fit session, we’ll break down practical ways to save smarter, no matter your starting point:

• Saving on ANY income—even small amounts add up
• Building an emergency fund that’s got your back
• Find your magic number—how much should you save?
• Unlocking the power of compound interest to grow your money

The best is yet to come! Stay tuned and discover new ways to level up your financial fitness. Your future self will thank you!