4 tips for cleaning up your debt this fall

The beginning of the fall season is just days away! While many people associate autumn with beautiful leaves, cozy clothing, and pumpkin-spiced everything, fall is also a great time to do some financial housekeeping. Just like you might clean up your house before winter hits, this season is perfect for tidying your finances and cleaning up your debt. Maybe you are saving for your next home, preparing to renew your mortgage, or hoping to free up some space in your budget. In any case, cleaning up your debt can bring peace of mind and set you up for success as we finish off 2025. Here are four tips to help you get started this fall.

#1 Understand what debts you have

Before you can start cleaning up your debt, you need to know what you’re dealing with. Your best first step is to take inventory of your current debts. This includes your credit cards or lines of credit, home or student loans, car payments, and any other outstanding debts. For each one, write down the interest rate attached to it, as well as the balance owing.

It’s okay if this task feels a bit overwhelming, as it can be tricky to lay out your debts and face your balances owing, especially if the numbers are bigger than you expect. However, it’s an important step toward taking control of your finances. You can think of it like cleaning out a messy cupboard or closet in your home. You can’t make progress or tidy up without placing everything out in the open and deciding what needs the most attention.

#2 Always pay the minimum amount owing!

How should you prioritize your debts and payments? It might seem like common sense to tackle your highest-interest debts first, but you should never neglect your smaller debts and only focus on the larger ones. Your top priority should always be to make at least the minimum payment on every payment. Missing a payment can result in late fees, increasing your amount owing and potentially hurting your credit score.

Your minimum payments are the essential amounts. They keep your accounts in good standing and prevent your debt from growing faster than necessary. If you have extra money available once those are covered, that’s when you can start paying extra towards specific debts. Maybe you want to clear some balances that are almost gone, or start tackling high-interest debts. No matter what, making those minimum payments first is essential to protecting your financial health. 

#3 Cut back on unnecessary spending

Cleaning up your debt often means finding extra room in your budget. Of course, that starts with identifying where your money is going. Look back at your last three months of spending and see if there are spots where you can cut back. Some common culprits include unused paid subscriptions, impulse shopping online, and frequent takeout purchases. You will likely find that even small cuts can make a big difference over time. For example, if you are able to cut out $100 per month in unnecessary spending, that is $1200 per year you are able to save! You don’t have to cut out every fun purchase, but being intentional about how you spend your money makes it easier to stay on track and reach your goals.

#4 Create a payment plan you can stick with

A debt repayment plan is an important part of cleaning up your debt. It keeps you focused and less likely to get off track. So, how can you build your own repayment plan? 

• Set a realistic monthly payment goal based on your budget.
• Automate your payments so you never miss a due date.
• Track your progress monthly to stay encouraged.

You should think of your debt repayment as a bill you need to pay. Just like your mortgage or utility bills, try to think of your repayment plan as something that cannot be skipped. If you struggle to stay on track, try to remind yourself why you are working to clean up your debt. Do you want to become mortgage-free faster? Are you hoping to free up your budget for peace of mind? Keeping your goal in sight will help you stick with it!

Cleaning up your debt is an investment in your future. If you’re unsure where to start, or you’re interested in purchasing a home, that’s where we come in! Together, we can review your current situation, and create a plan that gets you closer to your financial goals. 

If you have any questions about your mortgage, get in touch with us at Clinton Wilkins Mortgage Team! You can call us at (902) 482-2770 or contact us here.