Since a lot of Americans struggle with debt, I thought it would be helpful to talk about the two most common debt reduction strategies: the “snowball” approach and the “avalanche” approach. Each method has its own advantages and disadvantages, so watch my video below, where I talk about each one in more detail to help [...]
I like numbers. Hence, I am a financial planner. But what I’ve found is that sometimes focusing too much on just the numbers in my financial life can leave me completely overwhelmed. Take debt, for example. Did you know the average amount of personal debt per person in the U.S. is $50,646?* If you want [...]
Looking to buy a new car, apply for a credit card or possibly buy a home? Then you definitely want your credit score to be in top shape. Your credit score, also known as FICO, is a score calculated from your credit report. It’s basically an indicator of how risky a borrower you are. Your [...]
If you could eliminate one thing from your financial life, what would it be? When I asked this question to my entire list a few weeks ago in a survey, do you know what the No. 1 answer was? It was to eliminate debt. I’m not surprised, since we live in a society where debt [...]
Have you checked your credit report and score lately? I know, I know–one more thing to add to your financial “to-do” list. But before you get into overwhelmed mode, let me explain why checking your credit report and score at least annually is super important. Your credit report is a huge file about you and [...]
OK, so you’ve come to terms with the debt you have, and you have some extra money in your cash flow to allocate toward extra debt payments. Now the question becomes: What debt-reduction strategy is actually best? Well, there are a few debt-reduction strategies you can follow, but here are two of the most popular:
When working on debt reduction, most individuals lean toward putting all their extra cash toward additional debt payments, thinking this is the fastest path to becoming debt-free. And sure, it certainly feels good to see the immediate gratification of your debts going away in large chunks at a time. But when you take all your available cash and make additional debt payments, you remove the ability to save any of that money and build up your emergency fund to a healthy level.
Willow McJilton assists clients in developing and implementing an estate plan to guard against a lack of financial security, unnecessary taxes, expensive Court and legal costs, and/or family conflicts in the event of death, incapacity and/or a transfer of wealth within a family.
Watch Rosanna Savone, Attorney at Law talk about workout plans, also known as debt settlement. Workout entails an arrangement negotiated between a creditor and a debtor as a way to take care of a debt.
Do you wake up in cold sweets at night thinking about the debt you have? Or feel guilty or ashamed to admit how much debt you really have? Is Debt just constantly hanging over you and you don’t know how to get rid of it? Well I am here today to share some helpful tips on how to get out of debt.
Connect with Brittney Castro, CFP®