Written by Honor CU Guest – Greg
Hildebrand, Honor Financial Group Financial Representative
We’ve
talked a lot the last couple of weeks about ways to save money this time of
year from back to school expenses to cutting costs in the kitchen. The fact of the matter is, though, that this
time of the year can be an expensive one for many families. Consumers are borrowing again, making a big
economic splash. Spending does help the
economy, but too much debt can harm you!
Here are four common areas of debt and some tips to manage them:
1. Mortgage Debt: $8.05
TRILLION in debt nationwide! Owning your
own home is a huge accomplishment and is something you should be proud of. Keep an eye on interest rates and consider
refinancing at lower rates.
2. Student Loan Debt: Over
$1.08 TRILLION! As of a study completed by the Federal Reserve Bank of New
York, this area of debt was the biggest percentage increase with over a 5%
increase in the year prior. If you have
student loans try making payments sooner than your loans become due and try to
pay more than the minimum amount to save on some interest.
3. Auto Loan Debt: $863
BILLION! Spending on items like a new
vehicle helps you get from A to B and also helps the economy rise. As you incur this debt, though, determine if
you can make additional payments towards your principal amount to pay off your
loan faster.
4. Credit Card Debt: $683
BILLION! Consumers are spending again
using credit cards, but the good news is they are doing it more mindfully. Make sure you are mindful of the debt you
accumulate on your credit card and try to pay off higher interest rate cards first. Consider consolidating credit card debt if
you have more than one credit card to make your payments more manageable.
If you have questions and would like to meet with a financial advisor,
Honor Financial Group is a great first step.
Give us a call to set up an appointment today. And, don’t forget to follow Honor on Twitter
@honorcu! Tweet us and let us know what
you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!
Securities offered through LPL Financial, member FINRA/SIPC.
Insurance products offered through LPL Financial or its licensed affiliates.
Not NCUA Insured -Not Credit Union Guaranteed -May Lose
Value
As it pertains to the portion of the broker/dealer disclosure above, when read you should say, "Investments are not NCUA Insured, not credit union guaranteed and may lose value
As it pertains to the portion of the broker/dealer disclosure above, when read you should say, "Investments are not NCUA Insured, not credit union guaranteed and may lose value
