Managing Your Debt
Donald M. Fink has over 40 years’ experience in helping clients with investments and increasing their retirement portfolio. Debt can be very stressful on your well being when life doesn’t seem to be going your way. Not all debts are bad! For students, when you graduate college and can’t find a job, your student loan debt can be very demoralising and has a negative effect on both your physical and emotional wellbeing. However, one of the things you want to learn is how to manage your debt and make sure that you stay on top of it, rather than it getting the best of you.
Which debt do I pay off first?
Depending on how you owe, the first thing you want to assess is which debt is costing you the most amount of extra money. This depends on interest rate and size of the loan. Calculate the long term amount you will be spending if you pay off a certain loan first and check to see which will provide you with the most savings in the long run. If you have a debt in bad standing, you want to bring that in good standing before you pay off any other debts as to not adversely affect your credit.
How do I stay on top of my debts?
The best way to stay on top of your debts is to create a monthly budget plan which allows you to pay your monthly payments before you spend on anything else. One of the best ways to help in this monthly budget plan is to set your bank account to automatically pay the set amount for your debt on the day of or the day after you get paid. By doing so, you are treating it like an investment. You will thank yourself when you see your debt or a huge chunk of it gone down the road. Depending on the amount of the debt, you may have to make a short-term sacrifice to get out of the physical and mental stress of being in debt.
At the Advisory Co, we have an impeccable record of providing sound financial advice to our clients. Call us today at 702-869-1919 and let us get you setup with a retirement expert.
Donald M Fink has been advising and helping high income individuals and business owners with strategies for over 40 years. He continues to consult with private clients in the areas of estate planning, wealth management and asset preservation and to this day maintains Life & Qualifying membership and Honor Roll status in the Million Dollar Round Table (MDRT).