Jessica L. Bost, CFP®, RICP®, AIF®’s Post

Strategies Have you ever heard of strategies for debt re-payment? Well, we do have strategies as Debt avalanche, Debt consolidation and Debt snowfall. Debt Avalanche The debt avalanche method involves making minimum payments on all your outstanding accounts and using any extra money to pay off the bill with the highest interest rate. Using the debt avalanche method will save you the most in interest expense however it only targets interest rates rather than balances. As such, you may not necessarily put a dent in the debt with the highest balance as it only receives the minimum payment. This can be daunting and cause you to feel like you're not making any progress. This means discipline and consistency is the key here. Debt Snowball The debt snowball method involves paying off the smallest debts first and then moving to bigger ones. It is a strategy in which you essentially tackle the smallest loans first. The only benefit one can get is the mental satisfaction of clearing out a certain debt quicker, however the flip side of it is that debt snowball does not reduce the amount you pay in overall interest as much as the debt avalanche method does. Debt consolidation refers to taking out a new loan or credit card to pay off other existing loans or credit cards. By combining multiple debts into a single, larger loan, you may also be able to obtain more favorable payoff terms, such as a lower interest rate, lower monthly payments, or both. It has a couple of downsides- when you take out a new loan to pay your existing small loans, your credit score could suffer a minor hit and depending on how you consolidate your loans, you could also risk paying more in total interest. The best debt payoff option depends on your financial goals and your personal approach to money. If you find it most meaningful to save money, the debt avalanche is a good choice. If you’d rather motivate yourself with fast wins and regular celebrations, the debt snowball is for you. Debt consolidation is, I would say, must for any person (if it doesn’t lead to excess interest on the new loan taken) so you can get focused to fewer loans.

The world is $91 Trillion in Debt... Seriously! How are You Doing With Your Debts? Is it Time to Panic? Governments owe an unprecedented $91 trillion -- almost equal to the size of the entire global economy. The US government alone owes more than $34 trillion. With that amount of debt, some experts warn even rich countries could see their living standards slip. And since it's an election-heavy year, the problem may get worse as campaigning politicians write checks their countries can't cash Review: The world is sitting on a $91 trillion problem. ‘Hard choices’ are coming https://lnkd.in/gD2949_q AVERAGE AMERICAN DEBT As of May 29, 2024, the average debt in America is $104,215 across mortgages, auto loans, student loans, and credit cards. Debt peaks between ages 40 and 49 among consumers with excellent. The largest percentages of the average consumer debt balance are mortgages. Review: Average American Debt in 2024: Household Debt Statistics: https://lnkd.in/gi9_Jd2H TAKE CONTROL OF YOUR WEALTH If you're ready to take control of your financial future and unlock the secrets to building wealth, you've come to the right place! * We'll teach and mentor you on practical strategies on how to get wealthy, whether you're just starting out or looking to accelerate your earnings From creating multiple income streams to leveraging the power of the internet, we'll explore proven methods to make money online and achieve your financial freedom goals. * Forget get-rich-quick schemes; we're focused on long-term wealth building here. * Discover the importance of a conscious spending plan and how it can help you prioritize what truly matters while still enjoying the journey to riches. * Contact and Join us as we dive into the wisdom of financial experts whose insights have helped countless individuals transform their financial lives. * Whether you're a teen, in your 20s, or starting from scratch, we'll show you actionable steps to pave your way to becoming wealthy. * It's time to shift your mindset from just making money to building wealth. Contact and Join us in the MKS Master Key System Millionaire Program. Live Long and Prosperously, Reitenbach-Kissinger Institute Sydney and Michael Text: 650-515-7545 Email: [email protected] Review: 1. MKS Master Key Coaching: mksmasterkeycoaching.com 2. We will teach you how to get RICH in 1 HOUR: https://lnkd.in/ge4g9sJb 3. 10 Reasons Why Many Educated People Are POOR!: https://lnkd.in/g9hKUh5s 4. The 7 Levels Of Wealth (What Stage Are You In?): https://lnkd.in/gTzsT7rM 5. 10 PROVEN STEPS to BUILD WEALTH from SCRATCH |Get RICH | Get out of POVERTY! https://lnkd.in/gufuYFZW 6. 12 Places Where Money Hides (MUST WATCH) https://lnkd.in/gwR7CWqb

Is debt good or bad? Well, the answer to the above question depends solely on usage. Stay with me.., Debt has become a common feature of modern life, with many of us relying on credit cards and loans to fund our purchases. This often seems like a convenient way to get what we want now, but it can quickly turn into a financial burden down the line. Why do we want what we want now? Keep this in mind! There are strong psychological triggers that influence our cravings and consumer mindset, and one such trigger is the innate human need for social validation. We are wired to seek approval and acceptance from others, often using material possessions as a means to gain recognition and status within our social circles. Social media has even made this worse. Now, we are constantly bombarded with images of our peers living seemingly glamorous lives, leading us to believe that we too need to have the latest gadgets, fashion, and experiences to feel fulfilled. All these come at a cost. Imagine you're eyeing that shiny iPhone 15 series priced at $1000, and you decide to get a loan with a hefty 22% interest rate to buy one now. After just one year, that iPhone ends up costing you $1220, i.e., $220 more than its original price. This shows how debt can quietly eat away at our finances, leaving us paying far more than we bargained for. If you're struggling with debt and feeling lost, follow the steps below to pull yourself back up. Step 1 - List all your debts: Start by taking a comprehensive list of all your debts. Step 2 - Separate by interest rate: Identify which debts have the highest interest rates, as these are likely costing you the most money. Step 3 - Choose a repayment method: Decide whether you'll use the snowball or avalanche method to tackle your debts. The snowball method involves paying off the smallest debts first, while the avalanche method prioritises paying off high-interest debts first. Step 4 - Utilise your savings: Consider using any savings or extra income to make additional payments towards your debts, following the repayment plan you've chosen. Breaking free from the cycle of debt is achievable with careful planning and determination. But, the key is to take action now!! In personal finance, bad debt often arises from excessive borrowing for consumption while good debt is borrowing money for investments or assets that have potential to increase in value over time or generate additional income. Now you know that good or bad debt depends on usage!

Stuck in middle-age debt? Burying your head in the sand won't make it disappear. Face it head-on, come up with a plan, and stick to it like your life depends on it. Let's be blunt: Ignoring your debt is like ignoring a ticking time bomb. You wouldn't just sit back and hope it defuses itself, would you? No. You'd take action. Debt isn't any different. Most blokes think debt will magically vanish if they just ignore it. WRONG. Debt grows, compounds interest, and sneaks up on you when you least expect it. It's like carrying an extra 50kg every day — invisible but always weighing you down. It saps your energy, your mood, and your future. The good news: You can break free from this cycle. Facing your debt head-on isn't just courageous; it's bloody liberating. Here's how you reclaim control: 📊 Assess: List out every debt you owe. Name it, shame it, and get it on paper. 💡 Knowledge: Know your interest rates, minimum payments, and due dates. 👊 Plan: Attack the highest interest debts first while making minimum payments on the rest. Doing this gives clarity and control. It’s like finally cleaning out that messy garage. You’ll know where everything is and can tackle it bit by bit. Right, lads. It’s time to turn this battle into a game. Here’s your action plan — your debt-busting strategy: Step 1: List Your Debts Document every last one. Credit cards, loans, mates who lent you cash. All of it. Step 2: Create a Payment Calendar Mark every due date. Think of it as your debt battle plan, and stick to it like your morning coffee routine. Step 3: Snowball or Avalanche Choose a strategy: - Snowball: Pay off the smallest debts first to gain momentum. - Avalanche: Focus on high-interest debts to minimize costs. Step 4: Automate and Adjust Set up autopay where possible. Regularly review and adjust your plan. Face your debts with the tenacity of a wild dog on a bone. Regain your freedom. Imagine a life where the only weight you lift is at the gym, not on your shoulders every day. Start now. Your future self is counting on you. Because you, my friend, are capable of so much more than just surviving middle age. You're here to thrive, debt-free and damn proud of it. ----- Follow to improve your life. ----- #financialplanningtips #selfcareisapriority #wealthplanning #resiliencequotes #standinyourpower #midlifehealth #wealthprotection #progressoverperfect #midlifewellness #yourpath #successfulhabits #yourbestself #success_mindset #midlifewisdom #mindsetmastery #believeingyourself #disciplineiskey #growthmindset🌱 #burnoutprevention #financialplanning101 #dontgetcomfortable #midlifejourney #creativityheals #findyourstrength #beresilient #burnoutisreal #midlifewisdom #changeyourlifetoday #midlifeignite

Debt Den Dwellers No More: Conquering Your Credit Card Demons and Building a Debt-Free Future Debt. A four-letter word that can strike fear into the hearts of even the most financially savvy individuals. Whether it's credit card bills, student loans, or lingering car payments, debt can feel like a heavy burden, trapping you in a seemingly endless cycle of repayments. The fear of never being debt-free and the frustration of watching money disappear towards interest payments can be overwhelming. But fear not, financially fearless fighters! By adopting a strategic approach and developing a debt-slaying mindset, you can conquer your credit card demons and build a debt-free future. Forget the fantasy of a magic debt eraser, let's focus on practical strategies to crush your debt and achieve financial freedom. The Frustrating Financial Labyrinth: The Debt Trap and the Interest Rate Maze Let's be honest, dealing with debt is a major source of stress. High-interest rates feel like an inescapable maze, and every minimum payment seems like a drop in the bucket. The fear of never getting out of debt can be paralyzing, leading to feelings of frustration and hopelessness. This negativity can make it difficult to even start tackling the problem. The Fantasy Fountain: The Effortless Debt Eraser Ah, the fantasy! Imagine a magical fountain that dissolves your debt with a single dip. No more late nights crunching numbers, no more agonizing over repayment plans – just a debt-free life bestowed upon you instantly. While a debt-erasing fountain might seem like the ultimate solution, lasting financial freedom requires proactive strategies and a commitment to responsible debt management. The Reality Check: Building a Strategy and Embracing Responsibility The good news is, achieving a debt-free future is possible. By building a strategic plan and taking responsibility for your repayments, you can conquer your debt and achieve financial peace of mind. Here are some key steps to consider: List Your Debts: The first step is to get a clear picture of your financial situation. Create a list of all your debts, including the outstanding balance, interest rate, and minimum payment for each debt. Choose a Debt Repayment Strategy: There are two popular methods for tackling debt: the debt snowball and the debt avalanche. The snowball method focuses on paying off the smallest debts first, regardless of interest rate, which can provide a motivational boost. The avalanche method prioritizes paying off the debt with the highest interest rate first, which can save you money in the long run. Choose the strategy that best suits your financial situation and personality. Create a Budget: Developing a realistic budget is crucial for managing your debt repayments. Track your income and expenses and identify areas where you can cut back to free up extra money for debt payments.

The Weight We Carry: Debt, Burden or Bridge? Debt. The four-letter word that hangs heavy on shoulders, casts a shadow over dreams, and whispers insidious doubts in the dead of night. It's the unwelcome guest at the dinner table, the elephant in the living room, a constant reminder of what we owe, of what we can't afford. Yet, debt is more than just a number on a statement, it's a complex tapestry woven with threads of our aspirations, vulnerabilities, and ultimately, our choices. For some, debt is a crushing weight, a suffocating force that steals the joy from every breath. It's the single mother working two jobs to put food on the table, the student drowning in loan repayments, the entrepreneur clinging to a dream that seems to recede with every interest payment. In these moments, debt is a burden, a symbol of inequality and a stark reminder of the limitations that bind us. But wait, is debt always the villain? Can't it also be a bridge, a path to a brighter future? The young couple, fueled by ambition, takes on a mortgage to build their first home, a foundation for their family. The entrepreneur, fueled by passion, secures a loan to launch their business, creating jobs and chasing their vision. In these instances, debt becomes a stepping stone, a calculated risk that unlocks potential and propels us forward. The truth is, debt is neither inherently good nor evil. It's a double-edged sword, and the power lies in our hands. It's about understanding our motivations, weighing the risks and rewards, and wielding this tool with intention and responsibility. So, before you succumb to the despair of debt, take a moment to reflect. Is it a burden you must break free from, or a bridge to a future you desire? Remember, the choice is yours. You have the power to rewrite the narrative, to transform debt from a weight that holds you down to a force that lifts you up. Embrace the discomfort, for it fuels your determination. Seek knowledge, for it empowers your decisions. And most importantly, never lose sight of your dreams, for they are the guiding light that will lead you out of the darkness and towards a brighter, debt-free tomorrow. Remember, the weight you carry is not just financial, it's emotional. But remember too, the strength to overcome it lies within you. Choose wisely, and make debt your stepping stone, not your stumbling block. The journey starts now.

Till Debt Tear Us Apart.. He found himself drowning in debt after using credit cards to cover medical expenses and unexpected emergencies. The monthly statements piled up, and the interest rates seemed overwhelming. He started to panic when look at his savings account. If he continued to hide this issue under the carpet, things would only lead him to a dead end. We sat down together and took a hard look at his financial situation. We discussed the root causes of his debt, it made him realize that understanding these causes was crucial to preventing future financial troubles. We listed out all his debts, from the smallest balance to the largest, but something caught our eye, the interest rates. We decided to come out with a debt repayment plan:focus on paying off the debt with the highest interest rate first while making minimum payments on the rest. Once the highest-interest debt was eliminated, we would move on to the next highest, and so on. This approach would save him money on interest over time and help him become debt-free faster. We started with his credit card, which had a staggering 18% interest rate. We adjusted his budget, cutting out non-essential expenses, and directed all extra funds towards this high-interest debt. It wasn’t easy, but every payment brought him closer to his goal. Month after month, he chipped away at that credit card debt. Finally, the day came when the balance hit zero. The sense of relief and accomplishment was immense. Without missing a beat, he redirected his efforts to the next debt on his list, a personal loan with a 8% interest rate. As he continued his journey, he noticed something amazing. Not only was his debt decreasing, but he was also becoming more financially savvy. He learned to live within his means, avoid unnecessary purchases, and save for emergencies. Each debt he conquered gave him more confidence and control over his finances. Years later, he made his final payment and became completely debt-free. The strategy had worked its magic, and his persistence paid off. He celebrated his financial freedom with a small treat and a promise to himself to stay debt free. By focusing on the highest-interest debts first, he saved money and freed himself from the burden of debt. Getting a handle on your debt can feel overwhelming. But by identifying the root causes of your debt and determining what method of debt repayment is most sustainable, you can create a debt management plan that works for you ,even while you work toward other financial goals. Remember you have the choice to choose your money destiny. #Vivfpjourney #financialplanning

Credit Card Debt: Your Worst Financial Enemy Your wallet's plastic rectangle may appear harmless, yet helpful for routine transactions. The truth is, though, that uncontrolled credit card debt may be your deadliest adversary when it comes to money. It's a stealthy robber that steals your aspirations and your hard-earned money in silence. Why is credit card debt so dangerous?  High interest rates: Credit card issuers frequently levy outrageous interest rates that reach double digits. These costs have the potential to swiftly accumulate, turning a modest purchase into a debt mountain.    Minimum payment trap: Although the minimum payment may appear little, it's actually just enough to keep you in interest-bearing territory. Making minimum payments can result in years of debt repayment, which will ultimately cost you much more.    There is temptation: Credit cards provide quick access to money, which increases the likelihood that you would overspend on unnecessary items. Plastic-fueled lifestyle inflation and impulsive purchases have the potential to rapidly get out of hand.    Stress and anxiety: Having debt may be a big load that leaves one feeling stressed, anxious, and restless at night. However, hope remains! You are capable of escaping the clutches of credit card debt and taking back financial authority. To help you get started, consider these steps:  Acknowledge the issue: Recognising that you have a debt problem is the first step. Regarding the amount you owe and the interest rates you are paying, be truthful with yourself.    Establish a budget: To find out where your money is going, keep a record of your earnings and outlays. Set aside money for necessities, paying off debt, and even for enjoyment!    Give high-interest debt priority: Prioritise paying off the credit cards that have the highest interest rates. Over time, this will save you the most money.    Evaluate your choices for repayment: Look into reduced interest rate possibilities for balance transfers or debt consolidation. Remember, tackling debt is a marathon, not a sprint. It takes time, discipline, and sacrifice. But the freedom and peace of mind you gain from being debt-free are priceless. International School of Management Excellence Dr Ratchana R.

Is Your Debt Acting as a Slow Poison in Your Body? Is it creating excessive mental stress or physical ailments? If so, then it’s hardly surprising because debt or financial issues have a direct relation with your mental and physical well-being. Debts lead to mental stress and generate negative thoughts in your mind. The result is fatal. The Average American Has $90,460 in Debt Borrowing money is often an important part of a long-term financial plan, whether it’s to access education and career opportunities, buy a car for your commute or find a place to call home. However, debt also involves a little risk and can be expensive. Not only do you […] There’s only one solution: Debt Freedom. Stop making excuses and start eliminating your debt and start building your financial freedom today! How Much Debt Do You Want to Eliminate Today? Why Will You Stay in Debt in 2024? Want the Best Ways to Escape from Debt and Build Wealth in 2024 contact and join us in the MKS Master Key Debt Elimination and Wealth Challenge to Succeed now. Live Long and Prosperously,   Reitenbach-Kissinger Sydney and Michael Text: 650-515-7545 Email: [email protected] Review: MKS Master Key Debt Elimination and Wealth Challenge: https://lnkd.in/ebRWMYJj

Decoding Debt: Good, OK, and Bad Debt - A Brief Guide 📊💸 Navigating the world of debt requires a nuanced understanding of its various forms. Not all debts are created equal, and distinguishing between good, OK, and bad debt is key to maintaining a healthy financial portfolio. Let's break it down: 1️⃣ Good Debt: Good debt is an investment in your future. It typically involves borrowing for assets that have the potential to grow in value or generate income over time. Examples include student loans for education, mortgages for a home, or business loans to start a venture. These debts have the potential to contribute positively to your overall financial well-being. 2️⃣ OK Debt: OK debt falls somewhere in the middle – it's not inherently detrimental, but it doesn't necessarily contribute directly to wealth-building. Examples include car loans or moderate credit card use for essential purchases. While not as favorable as good debt, OK debt can be manageable if approached with caution and a clear repayment plan. 3️⃣ Bad Debt: Bad debt is the kind that can hinder your financial progress. It often involves borrowing for non-essential, depreciating assets or for expenses that don't contribute to your financial growth. High-interest credit card debt, payday loans, or save now buy later fall into this category. Bad debt can lead to a cycle of financial stress and negatively impact your long-term financial health. Understanding the differences between these types of debt is crucial for making informed financial decisions. Here are a few key takeaways: ✅ Leverage Good Debt Wisely: Invest in your future with strategic borrowing for assets that appreciate or generate income. This can contribute positively to your net worth over time. 🔄 Manage OK Debt Mindfully: Be cautious with moderate debt, ensuring it aligns with your overall financial goals. A clear repayment plan is essential to prevent OK debt from becoming a burden. 🚫 Minimize Bad Debt: Minimize borrowing for non-essential, depreciating items, and steer clear of high-interest debt. Prioritize paying off bad debt to break free from financial stress. By understanding the nuances of good, OK, and bad debt, you empower yourself to make financial choices that align with your goals. First thing is to take inventory of the type of debt that you carry? Not all debt needs to be paid down immediately. Don't feel like you have to figure this all out on your own. Reach out if you have any questions.