The new year always brings new challenges, fresh hopes and resolutions to make life better and more fulfilling. Life comes at you fast as these last two years of living under a global pandemic have taught us. Things change fast and often for unexpected reasons. One thing that we all know about life is that we need to face our challenges head on and take control of the situation.
Make a Resolution
One of the most troubling situations we find ourselves in is debt. We have repeatedly discussed the harmful effect debt can have on our physical and mental health. Debt also keeps us from getting ahead in life. If you’re constantly scraping and clawing to make minimum payments on credit cards or you’re in over your head on auto, boat or RV payments, you’re never going to be able to save for retirement or leave a nest egg for your loved ones when the time comes.
More Americans got into debt this holiday season than in previous years. Nearly 1 in 3 Americans spent an average of more than $1,200 more than they could afford. Most of that spending was covered by credit card usage.
The Reality of Debt
What does that mean for the 33% that spent that much more than they could afford? First of all, in the short term, it means struggling to make higher payments. In the long term, it means less money to save for the future.
The average American household carries around $6,100 in revolving (credit card) debt. Add to that an extra $1,200 and suddenly an average monthly minimum goes from around $250 a month to nearly $300. Add to that the nearly 1 extra year of payments and nearly $2,000 more in finance charges and you have a real problem on your hands.
If you invested that same $2,000 in finance charges and the $50 a month payment increase in an interest bearing account, over the same amount of time, you’d have over $12,000 in savings. If you took that same $7,300 and invested it and made a $300 a month contribution to your savings, you’d have 67,000 over the same time period.
So, Amanda, what’s your point?
My point is this.
Make a resolution to do something about your debt.
Bankruptcy is the most absolute way to rid yourself of debt that’s ruining your life and keeping you from saving for the future.
Bankruptcy stops the phone calls, harassing letters and lawsuits.
It eliminates debts either through a Chapter 7 fresh start or a Chapter 13 consolidation plan.
If you take control now, you’ll have more time to save for the future, lead a less stressful life and have more security.
When you’re ready to keep that new year’s resolution, call us. We’re here to help.