As women balance careers, family responsibilities, and personal obligations, the weight of mounting debt can feel like a constant strain. Add to that the statistical wage gap between men and women, and financial stress can quickly escalate.
Despite these challenges, achieving financial freedom is entirely within your reach.
Danessa Bishop and Eglantina Anderson shared five actionable steps women can take to effectively conquer debt and build a path to lifelong financial success.
Assess Your Current Situation
The first step in eliminating debt is understanding where you stand. By developing a complete picture of your finances, you can confidently prioritize which debts to tackle first.
“Start by creating a simple spreadsheet listing your income, expenses, and outstanding debts,” said Bishop, Vice President – Market Manager & Branch Strategy at Park Bank’s Capitol Square location. “This includes any debts from student loans, medical bills, credit cards and collections.”
When you know exactly where you stand, you can move forward with confidence.
Cut Unnecessary Expenses
Once you have an overview of your financial situation, it’s time to cut back on non-essential expenses that are preventing you from paying down your debt faster.
“It’s easy to overlook small, recurring costs like online subscriptions or memberships we no longer use,” said Anderson, AVP Branch Manager at Park Bank’s Hilldale location. “By cutting back on these, you can free up money that will help you pay down your debt more quickly.”
Choose a Repayment Strategy
Bishop and Anderson recommend two repayment strategies: the “snowball method” and the “avalanche method.”
The “snowball method” prioritizes paying off the smallest debt first, providing a psychological boost.
“When you pay off a small balance, it gives you a sense of a win, and you’re motivated to move onto the next one,” said Bishop.
Conversely, the “avalanche method” prioritizes the highest-interest debt, helping you save money in the long run.
“If you have high-interest credit card debt, for example, focus on paying that off first,” Bishop said. “This approach will save you more on interest over time.”
The strategy you choose ultimately depends on your current financial situation and personal preferences.
Consider Debt Consolidation
If you’re juggling multiple debts with varying interest rates, consolidating them into one loan could simplify the repayment process.
“Consider combining high-interest debts into a single loan with lower rates,” Bishop said. “This could save you money and reduce the stress of keeping track of multiple payments.”
Consolidation can help streamline your finances, making it easier to focus on long-term goals.
Stay Committed and Patient
Finally, keep moving forward and give yourself grace.
“It can be easy to get overwhelmed, but the key is taking consistent, actionable steps,” Bishop said. “Seek help from financial advisors who can guide you through the process and stay focused on your long-term financial independence.”
Park Bank Has the Resources to Help
At Park Bank, women can confidently take the first step towards financial wellness by connecting with their banker – a trusted, supportive partner in financial planning.
“We provide a non-judgmental space where clients can openly discuss their financial situation with us,” Anderson said. “As a relationship-based bank, we take the time to understand each client’s unique goals and work together to create personalized solutions.”