Monthly Archives: November 2015
Those citizens in debt need to just sit down and think about possible solutions. The longer they carry debt, other perhaps than their mortgage which should be a positive aid to building up an asset, the less chance they have of saving for the future, whether it is to build a justrightinstallmentloans.com emergency fund or retirement. Saving can become a habit; some got that from an early age as children, others have never saved in their lives, spending what they earn each month.
If you believe it is impossible to save you should ask yourself a few questions. The first might be how frequently in the month you eat out? If you eat out weekly then if you cut that down to three times a month then you will have a minimum of $50 which you can save. If you are still in your 20s you will be surprised with compound interest how quickly $50 a month grows even at fairly conservation annual growth. If growth averaged 8% per annum then your retirement pot could look very healthy indeed come retirement age.
Taking 401K Loans
Clearly you do not have to be earning a huge salary to be able to provide properly for your later years. A 401K is essential; employers will match your contribution up to a certain amount. There are tax benefits involved in a 401K in addition. If you do not understand that then there are always financial advisers who can help.
Retirement should be a time when people can enjoy a comfortable life after years of working. Health may become an increasingly important issue of course but people are living longer and so it is difficult to know how much anyone might need to guarantee they can be comfortable. The Social Security System is something that a large percentage of people are relying on to provide for them but therein lies a problem. More people are claiming benefit and for more years while fewer are contributing. There needs to be an injection of funds which realistically means higher taxation. That is unpopular in Congress at present but in the absence of more funds, estimates suggest that benefits will need to be cut by up to 25% by the mid-2030s. While common sense suggests that funding will be found from somewhere it does highlight the danger of over reliance on the System and not making private provisions.
Credit Card Debt Can Help
This highlights the problems associated with debt, particularly debt on credit cards which is particularly worrying. Those carrying debt on their cards over a period owe an average of just over $16,000 each. A high rate of interest is applied to these balances. Those who simply pay off the minimum each month will hardly be reducing their debt. Prior to the recession there was plenty of opportunity to switch that debt to a company offering 0% balance transfers; there are less available today. Similarly companies simply seemed to increase credit limits as people reached their existing ones without any deeper analysis. They are less complacent these days and there is every chance of an increasing number of people having their access to further credit card credit cut off.
Consolidate loan will make things easy
A consolidation loan may be the answer. Personal loans, even for those with a poor credit score, are available for those that have regular income and appear capable of paying instalments for the full term of the loan. Online lenders are less concerned with credit score than affordability. The point is that the rate of interest applied will always be lower than that the credit companies charge.
It makes sense to look at other possible savings as well. The $50 saved for not eating out that once described above can be augmented by possible savings made by shopping around. Utility bills, telephone charges and insurance costs can all be significant parts of anyone’s monthly expenditure. Each is worth investigating and comparison websites are a good place to start. Even if you do think you have the opportunity to earn more there are certainly ways to reduce debt and create a surplus each month that can be put to positive use. It is surely worth doing as a matter of urgency if you want a comfortable retirement!