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Are you controlling your debt or is it controlling you?

“Your financial identity is fluid and subjective. Update it anytime you like.”~ Bari Tessler

Part of creating a plan for your financial life is debt control. Whether you are battling debt because of sudden loss of income, a large emergency expense or going overboard with spending, one of the first steps to tackling your debt is to figure out what you owe.

Listen you are not alone- the average American had $6,194 in credit card debt in 2019 and that was before 2020 took a zigzag into the surreal.[1] With American unemployment rates moving from 3.5% in February 2020 to 14.7% by April 2020,[2] people have debt. So, if you do, for whatever reason, it is time to tackle it.  The reality of debt is whether your present self pays it or not, your future self definitely will at a much higher cost when you factor in interest.

The urge to bury your head might be tempting-to push off dealing with your debt until you get a raise, find a new job, even get your tax refund or to the day when you receive that magical windfall in the future that will erase your troubles.

BUT…debt that is ignored is debt that grows.  It is better to know where you are and create a plan from that place instead of waiting. Especially if you are still practicing the same habits that accrued the debt in the first place.

Download our debt tracker with repayment calculator- Here. Excel spread sheet. If you haven’t been looking at your finances, because you were overwhelmed- it might be a great time to pull your credit report and see what’s on there.  You can check all three annually for free, here.- https://www.annualcreditreport.com

Help your future self by addressing your debt, now.

If you feel like your spending habits are contributing to your debt accumulation, track your spending here with our expense tracker- here.

Need a guide to help with your financial life and want a holistic approach? If you’d like to work with us, Scarlet Oak Financial Services can be reached at 800.871.1219 or contact us here.

 

 

Advisory services offered through Capital Asset Advisory Services, LLC, a Registered Investment Advisor. This material has been prepared for informational purposes.
[1] https://www.cnbc.com/select/average-credit-card-balance-by-state/
[2] https://www.bls.gov/opub/ted/2020/unemployment-rate-falls-to-6-point-9-percent-in-october-2020.htm