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BUSINESS Monday 1 February 2021
How to make good on your resolution to pay off debt in 2021

By JACKIE VELING of Nerd- approval standards in the
Wallet pandemic, but borrow-
If you have high-interest ers with good to excellent
consumer debt, getting credit (690 FICO or higher)
control of your money in should have a good shot.
the new year might sound Look for a lender that spe-
overwhelming. cializes in debt consolida-
Most Americans say the tion and offers perks like di-
COVID-19 outbreak has rect payments to creditors
caused financial stress, or rate discounts for auto-
according to a survey re- mated payments.
leased in October by the If you have credit card
National Endowment for debt, you could apply for
Financial Education, with a balance transfer card.
30% listing debt as their top Though these cards typi-
stressor. cally charge a 3% to 5%
Despite the pandemic, fee, they offer an introduc-
you can still pay down your tory 0% interest period, so
debt with the right plan. all payments go toward
Here's how. your principal, which helps
CONFRONT YOUR DEBT you pay off debt faster.
The first step is simple, but You'll likely need good
it can be the hardest: You credit to qualify.
have to face the problem. Charles Ho, a California-
Angela Moore, a Miami- In this July 18, 2012, file photo, a pedestrian passes credit card logos posted on a downtown based CFP and founder of
based certified financial storefront in Atlanta. Legacy Builders Financial,
planner and founder of Associated Press urges caution for some
Modern Money Advisor, consumers. Though con-
which offers virtual advising away once you have clar- Advisors. "It doesn't hurt to those experiencing finan- solidation tools can save
and education for consum- ity." say, 'I'm still trying to do the cial difficulties due to CO- money, they also free up
ers, says it's common for COMMUNICATE WITH YOUR right thing, I'm still trying to VID-19. your credit cards for more
her clients to know they're LENDERS make payments. Where CONSIDER CONSOLIDAT- spending.
in debt but not know how After listing your debt, it's can we meet in the mid- ING "It might make mathemati-
much. time to get on the phone dle?'" he says. Any break If you have multiple types cal sense to consolidate
She recommends compil- with your creditors. you get, take that money of debt, such as loans, your loans, but the math is
ing your debt onto one Ask for a temporarily low- and apply it to your debt. credit cards and medical meaningless if we don't ac-
document or spreadsheet, ered interest rate, reduced If you need help negotiat- bills, you may want to take count for our behavior and
listing all balances, mini- monthly payment or ing, contact a credit coun- out an unsecured personal end up almost doubling our
mum payments and inter- waived late fees. Make selor at a reputable non- loan to consolidate it into debt," he says.
est rates. sure to explain how the profit organization, like the one monthly payment. PICK A STRATEGY AND
Though the task is daunt- pandemic has influenced National Foundation for A consolidation loan is a STICK TO IT
ing, most of her clients feel your finances. Credit Counseling. Coun- good idea only if you can If you choose not to con-
relief once it's finished. Most creditors will be willing selors have relationships qualify for a lower interest solidate, there are two
"Debt is an emotional bur- to work with you, says Dan with creditors and can ne- rate than those on your common methods for ap-
den," she says, "but a lot of Herron, a California-based gotiate on your behalf. Ser- current debts. Some lend- proaching debt payoff: the
times that overwhelm goes CFP at Elemental Wealth vices are typically free for ers have tightened their snowball or avalanche. q
Toys R Us retrenches again, shutters its last 2 US stores

By ANNE D'INNOCENZIO based locations, have feet — about one-seventh
NEW YORK (AP) — Toys R Us been hurt by weak cus- of the size of the old Toys
is retrenching once again. tomer traffic amid the pan- R U stores and emphasized
The only two Toys R Us stores demic. hands-on experiences.
that opened in November The Toys R Us website is still Employees unwrapped
2019 as part of a small U.S. in operation. toys, for instance, so that
comeback attempt by the "As a result of COVID, we kids could try them out.
iconic toy chain have now made the strategic deci- During a visit to the New
closed. sion to pivot our store strat- Jersey store in late 2019,
The Toys R Us store at the egy to new locations and kids shot Nerf blasters and
Galleria mall in Houston platforms that have better sat in a circle for story time
shuttered on Jan. 15, while traffic," Tru Kids said in an while Geoffrey, the chain's
one at the Garden State emailed statement Friday. mascot, roamed around.
Plaza in Paramus, New Jer- "Consumer demand in the Such experiences are now
sey, closed on Tuesday, toy category and for Toys shunned at a time when
according Tru Kids, a new R Us remains strong and shoppers have to abide by In this Dec. 9, 2019, file photo a girl hugs the Toys R Us mascot,
entity formed when it ac- we will continue to invest social-distancing rules. Geoffrey, at the new store at a mall in Paramus, N.J.
quired Toys R Us' intellec- in the channels where the Tru Kids says that outside of Associated Press
tual property during its liq- customer wants to experi- the U.S., it operates Toys R
uidation in 2018. ence our brand." Us, and Babies R Us brand- ners in more than 25 coun- Bloomberg News first re-
The moves come as physi- The two shuttered locations ed stores and e-commerce tries in Asia, Europe, Africa ported the news of the
cal stores, particularly mall- were about 6,500 square sites through licensing part- and the Middle East. store closures.q