As financial advisors, we typically focus on building and managing wealth. However, it’s also important to point out impediments to building wealth and financial security, like consumer debt.
While low interest debt can be a useful tool and offer benefits when used appropriately, high interest debt can be a threat to your financial security.
Many times we think of credit card debt and living paycheck to paycheck as problems for low income households, however these issues occur at all income levels. Your efforts to contribute to your 401k and other savings can quickly become counterproductive if you carry a credit card balance with a high interest rate. Alternately, paying off your credit card debt may be the first step to building long term financial security. Clark Howard’s blog recently had a great post about this topic: How to Get out of Debt Quickly in 5 Simple Steps
For many consumers the 5 steps above may be all you need to pay off your debt quickly and efficiently. If paying your monthly bills and getting out of debt is more than a short term problem, you may benefit from the help of a credit counseling service. Triangle Family Services offers many local services and workshops to help you improve your financial health.
