Credit and Debt
December 19, 2024
As you work to build your financial future, it is likely that things can get more complicated. That does not have to be a negative. Growing a family, advancing in a career, and investing in your ultimate goals provide more challenges and demand more attention, but – ideally – all is geared towards your ideal future.
Your money and assets can go through a similar change. As you build and grow, finance is not as simple as knowing how much is in your wallet or checking account. Credit cards, mortgages, loans, subscriptions, and other seemingly endless transactions and obligations can make it difficult to get a clear understanding of your position at any given moment.
A sound financial strategy is not necessarily about having zero debt or chasing more growth at every opportunity. But constantly monitoring your debt can help give you confidence and insight over your financial health. The end of the year is a good time to consider:
Debt
There is a healthy time and place for debt. A mortgage or car payment are likely necessary if you want a comfortable lifestyle and dependable transportation. Conversely, budgeting to pay down credit card debt can save unnecessary interest payments and bring about more confidence.
Take Advantage
Buying on credit will cost extra in terms of interest payments, but most cards feature some sort of benefit. Consider your needs and most common expenses (groceries, entertainment, travel, etc.) and shop for deals or lines of credit whose reward system best aligns with your normal spending.
Watch the Rates
Review terms and update information for accounts with outstanding balances. A simple conversation could open the door to a better deal for you.
Our team can help determine how credit and debt fit within your strategy. Contact us and take a step towards building knowledge and confidence in your financial planning.