While we once assumed debt with reluctance and were anxious to quickly pay it off, debt has become an accepted part of our lives. However, just how much debt can you safely handle without endangering your financial security?
If you find that over 15% of your net income after taxes is used to pay consumer debt (credit card balances, car loans, home equity loans, personal loans, etc.), you should take steps to reduce your debt to comfortable proportions. How do you do that? You need to establish a pattern of disciplined budgeting, reduce your borrowing, live within your means, and work on repayment schedules.
A burdensome level of debt reduces your ability to save for your short- and long-term financial goals. Debt, particularly expensive credit card debt, robs you of money that could be used to invest in your retirement or to save for your children's college educations. If you're serious about saving for your future, you must be serious about reducing your debt.
I would be happy to assist you with this process. Please call if you'd like to discuss reducing your debt in more detail.