Controlling Debt
April 18, 2024
When it comes to finances and saving for retirement, debt really is a four-letter word. High-level business negotiations might talk about “good” or “bad” debt, but it is never a bad idea to keep your personal debts low so you can keep more of your hard-earned money for yourself.
By keeping an eye on the different types of debt on your personal finance sheet, you can keep your finger on the pulse of your financial health and adjust as needed.
Credit Card Debt
Nearly everyone has at least one credit card payment to make each month. And even if your balances are low, interest rates may not be. The average rate for credit cards in March of 2024 was 24.37% APR1. So regardless of your balance, payments covering interest only can build up quickly and become sunk costs for you.
Credit Score
Maintaining a healthy credit score opens many doors for you. From better rates on long term agreements such as purchasing a car or house to getting more perks or rewards on credit cards, keeping a good score is a gift that keeps on giving.
Looking Ahead
Clearing personal debt is one of the best ways to add confidence while planning for retirement. Not only will lower debt provide a clearer picture of how you can work toward your retirement goals, but it will also help avoid extra hurdles when planning to leave a legacy to loved ones.
Hear From a Professional
Contact us today to get help as you look at your debts, savings, and any other concerns you may have regarding retirement planning. A complimentary consultation will start you on the right track as you work toward your retirement goals.