We are over halfway through my list of steps to improving your financial life! If you have done an honest self-assessment and taken action steps toward your goals, you are likely feeling a little more confident about your finances.
Now let’s talk about tackling your debt. This step can be a painful topic that many associate with fear, guilt, and shame. The truth is that debt is a part of life for many American households, but it doesn’t have to be.
Take a look at some of the key findings from Northwestern Mutual’s 2019 Planning & Progress Study:
The good news is that the more you develop yourself and your financial plan the less debt you will have.
Here are some common reasons why people go into debt: job loss, bad purchase decisions, shopping habit, or maybe you just haven’t been paying attention to your spending.
Whatever the reason, you are where you are. Debt is definitely an area where a lot of people could use a little help. Make it a learning lesson and break the pattern.
Below are a few suggestions of steps you can take to manage your debt:
Some people choose a custom repayment plan which can be a combination of these two methods. That way they can pay off some small cards to celebrate and pay relatively less in interest over the term.
It feels empowering to create a debt repayment plan to help you become more aware of your debt, improve spending habits, and set “pay-off” priorities.
Check back regularly for more tips on how I can help you live richly!
References and Further Reading
Northwestern Mutual. (2019). 2018 Planning & Progress Study
Bents Dulcio. (2019). What Is the Debt Avalanche?
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