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.
Park Bank’s Danessa Bishop and Eglantina Anderson shared five actionable steps women can take to effectively conquer debt and build a path to lifelong financial success.
1. 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,” says 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.
2. CUT UNNECESSARY EXPENSES
Once you have an overview of your financial situation, it’s time to review spending habits and cut back on non-essential expenses that are preventing you f rom paying down your debt faster.
“It’s easy to overlook small, recurring costs like online subscriptions or memberships we no longer use,” says 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.”
3. 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 says. “This approach will save you more on interest over time.”
The strategy you choose ultimately depends on your current financial situation and personal preferences.
4. 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 suggests. “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.
5. 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 says. “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 SUPPORT YOU NEED
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 says. “As a relationship-based bank, we take the time to understand each client’s unique goals and work together to create personalized solutions.”
Physiological Barriers in Debt Management
According to Anderson and Bishop, women often face these common physiological challenges in managing debt:
- Fear of Judgment Women may feel hesitant to discuss their debt due to feelings of shame or embarrassment.
- Lack of Confidence in Financial Decisions The gender gap in financial resources and opportunities can leave women feeling uncertain about their ability to make confident financial decisions.
- Emotional Spending For some, shopping is a way to cope with stress.
How Can Park Bank Help?
“We’ve guided women to achieve many of their goals. Through open conversations and tailored action plans, we’ve helped women better their credit scores, enabling them to secure their first vehicle, home and so many other things,” Anderson says.
