Managing debt has to be the hardest area to focus on for most people. The rent/mortgage payments, car loans, student loans and the biggest and hardest to keep away from is credit card debt! This is the kind of debt that sneaks up on you and can snowball into a huge burden, due to the high interest rates. According to the Federal Reserve, in Dec. 2022 the US had $986 BILLION in credit card debt! That was up by $60 BILLION from the year before. YIKES!!!!! The average person is carrying $5,500 in credit card debt. Let’s not be “average”.
This should be the first debt you tackle… Using Credit Cards is probably something that we all need to re-train our brains on what their purpose really is! COVID just drove drove up credit card debt when cash was not an option. But it HAS to go and be priority ONE! Did you know NOT paying the balance in full each month can affect your credit score?! If you do not have late payments, and you are not close to your credit limit, shouldn’t that be, OK? Apparently NOT. Credit Card companies are banks, and the banks get to make the rules and change them at any time… Same for the credit rating companies. So, let’s not let them control us!! Whatever it takes…That is the #1 debt focus!!! The real challenge… STAYING OUT!!!! Thats a workout in mental toughness! 🙂
- check out the FREE downloads on ways to pay down Credit Cards.
When it comes to the other debts, the experts say a mortgage should not be more than 25-30% of your gross-take home pay, and student loans totals should not be more that the average first year salary of your potential first job. As for cars… Let’s not be car poor people! ITS a car!! Reliable and safe! It’s like owning a boat…Goes down in value and cost you money! It’s a liability NOT an asset. Remember the BANKS want to see you in debt, that’s how they make money. Decide what YOU’RE comfortable with, NOT what they are willing to give you. Same with the mortgage. You lose your job, they don’t care, you still have to pay the same. Stop hanging out with the Jones!!! The Jones will have to work till they are 70+ years old!
two chicks talking money. 