Do you struggle with debt? If so, you're not alone. On average, Americans carried more than $100,000 in various types of consumer debt in 2022. And if you want to get your debt and finances to a healthier level, a financial advisor may be just the person to help. How? Here are a few surprising things they can help debtors do.
1. Decide Who to Prioritize
Not all debts are the same. High-interest debts, such as credit cards, often cost much more money to carry than low-interest debt. So the best debt payoff plan involves a strategy including who to pay off earlier, how much, and using which method. A financial advisor has the experience to help you do this.
2. Keep to a Budget
Budgeting is hard for most people. An independent advisor can help you conquer yours. They will work with you to come up with a workable monthly budget to reach your goals. And perhaps more importantly, meeting with them regularly helps you stay on track over time.
3. Continue Saving for the Future
In their quest to get out of bad debt, some people get too focused on one goal. Funneling all disposable income to debt repayment without planning for things like retirement and emergencies could leave you worse off than before. And it can have serious consequences for your future. Make reasonable goals and manage multiple priorities with professional help.
4. Start Investing In Assets
As you pay down debt, you will have disposable income that you can start using more wisely. Investments appreciate in value, as opposed to many types of consumer debt which depreciates. But how should you invest? What is your risk tolerance? What investments should you avoid? Get guidance from a trained advisor who specializes in investment management for beginners.
5. Work As a Family
Finally, do you have a spouse, partner, older children, or other family members? Often, only with their help can you have the most success on your journey to healthier finances. But discussing money is awkward and most people avoid it. Bring your family members when you meet with your financial advisor to get everyone on the same page. Learn how to have family meetings. Or meet as a couple with an independent advisor who can be a neutral third party.
Where to Start
In which of these areas could you use the help of a financial professional? No matter what they can assist you with, the result will be lower bad debt, better financial footing, and a happier family life. Make an appointment today.
For more information, contact a financial planner near you.
Share5 April 2023
My name is Alison, and I recently found out that I should have been saving for retirement since I first began working. I have now discovered what it takes to have a successful retirement plan, and I felt secure in my ability to care for myself once I am done working. I may even be able to retire early! I'd like to help you get your retirement plans in order and make the most out of the time you will have when you are no longer working. Let me help you understand what you need in a retirement plan and how you can get started.