Achieving real financial independence
Consolidated Credit supports the debt-free revolution for July Fourth.
Did you know George Washington hated debt?
No, really. Here is a quote from our first President with regard to national debt:
“No pecuniary consideration is more urgent than the regular redemption and discharge of the public debt: on none can delay be more injurious, or an economy of the time more valuable.”
In today’s English: Nothing is more important than eliminating our national debt, and there’s nothing more dangerous to the future of our country than leaving debt to sit unaddressed. If only politicians today felt the same way.
On the other hand, it’s funny that while the national debt is a big concern on the minds of many Americans, personal debt levels continue to be high as well. Unfortunately, instead of focusing on paying down that debt, many Americans seem to be headed in the other direction – adding debt with increased credit card spending.
“Just like any country can only function for so long borrowing without reducing,” points out Gary Herman, President of Consolidated Credit, “the same can be said about consumers and personal debt. And just like our government, people tend to focus on how much they can borrow rather than how they’re going to pay it all back. We could all do with a change in perspective.”
With that in mind, Consolidated Credit wants to help you make George proud this Independence Day by helping you make a plan to eliminate some of your debt.
Starting a debt-free revolution in your financial outlook
The following steps can help you get a handle on your debt so you can start reducing it effectively AND efficiently:
- Check your debt-to-income ratio to see where you stand overall. This shows you how much work you need to do. If you’re over 50 percent, you’re probably going to need some help to get where you need to be. Otherwise, you can follow the steps below.
- In general, credit card debt is the easiest to eliminate. So check your credit card balances and see where you stand. Then you can start crafting a plan to eliminate these debts quickly.
- Consider a balance transfer to make your debt more manageable. If you havea credit card with low balance transfer APR, then move all of your debt to that card so it’s not growing as fast with interest added. If you don’t have a card like that, but you have a good credit score, then you may be able to qualify for a new credit card with 0% APR on balance transfers.
- If you can’t transfer, start reducing with your highest interest rate card first. If you can’ttransfer balances from your high interest rate credit cards, then start eliminating the debt that’s on your card with the highest APR. This debt builds faster with interest added, so it costs you more each month.
- Don’t add until you’ve eliminated completely. Ever noticed that Congress will cut some tiny program to save a million dollars, only to add three other programs that all cost ten million? Don’t be like Congress. Make your plan to eliminate your debt and then see it through until your debt-to-income ratio is at the right level. Then you can make the decision of whether or not you want to start spending again.