Surmounting debt is often a problem believed to belong solely to older people. Perhaps they’ve had a credit card for years and gotten in over their heads, they’ve piled up a couple of mortgages, auto loans or personal loans, or perhaps they’ve had a business venture go south and have yet to recover.
While those scenarios are surely found in abundance in America today, debt is certainly not a problem for the mature population alone.
Increasing Opportunities For Debt
These days, more than ever, there are plenty of opportunities for young people to wind up in far more debt than they would have had years ago. Not only are student loan debts at an all time high, but young people are inundated with the opportunity to acquire debt. Shopping online, for instance, Pizza Dough can be of great benefit for many reasons, but prior to checkout on just about any website, you are offered the opportunity to apply for credit to receive discounts and other teasers.
When acquiring debt is as simple as a few mouse clicks, it’s no wonder that the average amount of debt per American household is nearly $16,000 for credit cards alone!
The good news is that if you are serious about getting out of debt, and willing to do the work, it is absolutely possible. There are no quick fixes. Bankruptcy may alleviate some of the burden, but most younger people are not in situations that warrant that type of drastic move.
Get Serious About Your Debt
Getting serious about your financial situation before it becomes too much to shoulder if probably one of the wisest financial moves you will ever make. Going into the retirement age without click the burdensome amount of debt that most people have means that you will live better, have less stress and ultimately live a much better life in your golden years.
So it’s best not to wait until you arrive there before attempting to fix things.
If you are wondering what the best approach to getting out of debt might be, we have some pointers that are sure to help.
- Make a list of all your debt and add everything together for an honest assessment of exactly how much you owe. Only then will you realize the magnitude of your debt situation and how the “minimum balance due” payments will never get you there in a reasonable amount of time. Since credit card companies make most of their money in the interest paid to them by their customers, it is not in their best interest for you to pay the balance down quickly.
- Pay the maximum monthly amount you possibly can on all your debt. If you have more than one payment to make, this may mean focusing on one at a time, in which case you should first choose to pay down whatever has the highest interest rate. Doing just a bit of research and math will quickly tell you that you are losing more money on those high interest rate loans and cards than anything else.
- Make a budget and stay on track. It may not be that living beyond your means got you where you are today, but adhering to a personal budget can assure you don’t make a bad situation worse. It can also allow you to stay on course for paying that debt down until it is completely paid off.
- Contact a financial planning firm to help you gain control of your debt. While DIY credit repair is currently being touted on many social media platforms, it doesn’t always work out the way you might have hoped. With a professional financial planning service, you’re sure to not only get the best advice and commitment available, but you will save yourself a lot of trouble in wondering if the route you have chosen is actually the best one for your situation.
Getting into debt is easy. Getting out of debt can take the rest of your life. Don’t leave such an important undertaking until it’s too late. Contact us today to find out how to get out of debt and avoid the possibility of bankruptcy.