Borrow today, pay more tomorrow

As small amounts can really add up when saving and accruing interest, the cost of borrowing money, even in small amounts at a time, can also add up with fees and interest charges. Home loans, student loans, auto loans, credit cards, and buy-now-pay-later options can all stretch your financial resources. Borrowing can seem easy in the moment, and a payment may seem reasonable, but these commitments can sometimes create long-term financial challenges. Before borrowing money, take the time to consider the long-term impact of your decision. The cost of borrowing money with interest and fees can quickly add up, costing you more than you plan to spend on a purchase. 

If you are struggling with debts, it can feel overwhelming. According to the Consumer Financial Protection Bureau, here are some signs that you may have too much debt:

• You don’t know how much you owe.
• You spend more money than you make.
• You struggle to make the minimum payments on your debt.
• You miss some required payments.
• You can’t buy things you need.
• You don’t have a good borrowing reputation with lenders.
• You’re not able to save money.

When planning to pay down debts, deciding which debt to pay off first can be challenging. Start by paying bills that meet your basic needs, such as food, shelter, and transportation. Many resources are available to help navigate the stressful decisions regarding debt, such as the National Consumer Law Center's resource, "Surviving Debt."  This resource helps guide you in prioritizing which debts to prioritize when you are struggling financially. 

The Utah State University Extension offers free resources and tools to help you create a debt repayment plan that works best for your personal situation. A free online tool called PowerPay helps you organize your debt and make informed decisions about how to manage it. This tool enables you to compare repayment strategies, allowing you to visualize what makes the most sense for you.

Focus on your financial wellness by reviewing your debts and getting organized. Track the details to see how much you owe, how much interest you are paying, and how long it will take to pay down the debt. Avoid taking on additional debt and develop a strategy to reduce your existing debt. 

References

Consumer Financial Protection Bureau (CFPB). (2022). Building Blocks Student Handout: What is Debt?. Consumerfinance.gov

National Consumer Law Center. (2025). Surviving Debt.

Utah State University Extension. (2025). PowerPay: Debt reduction tool. Utah State University.