How to Strategically Manage Debt

We had a #CreditChat with Dr. Scott Rick – Marketing Professor at the University of Michigan – Ross School of Business. Dr. Rick studies consumer financial decision making and shared his insights on how we can manage and eliminate debt.

During this tweetchat, we also had a Google+ hangout to discuss this topic and highlight favorite tweets. The video panel included: Gerri Detweiler – Director of Consumer Education, Credit.com, Deacon Hayes – WellKeptWallet.com, Maxine Sweet, Vice President of Public Education, Rod Griffin, Experian’s Director of Public Education, Claire Murdough (ReadyForZero), and Mike Delgado (Experian).

Questions we discussed:

Q1: Why is it easy to fall into debt? What types of debts?
Q2: What are the pros/cons of using credit cards? Why can CC lead to debt?
Q3: How do you choose what credit card or loan to pay down first?
Q4: What advice do you have for paying down credit cards faster?
Q5: How can we stay motivated to keep paying off debt?
Q6: Any advice for those drowning in debt? Where can they go for help?
Q7: What resources or apps can help those with budgeting or paying down debt?
Q8: Any final suggestions for those looking to pay down debt?

Highlights:

Resources Shared:

Tweetable Tips:

A lack of education about credit and credit terms can cause serious financial problems. [Retweet]

Debt issues can occur at all income levels, not just in low income households. [Retweet]

Credit cards are less painful to use than cash, encouraging debt. [Retweet]

Know your personality type. Don’t use a credit card if you are an impulsive indulger. [Retweet]

Focus on the highest interest (and most costly) debt first. Stick to debt avalanche method. [Retweet]

Never pay only the minimum! Look at the payment schedule to see how long it will take to pay off. [Retweet]

Automate credit card payments to coincide with your paycheck. [Retweet]

If you have a good payment track record, ask for a lower interest rate. [Retweet]

Here is the complete tweetchat storified:

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