Princeton Executive Center
4301 Route 1 South; Suite 220
Monmouth Junction, NJ 08852

LinkedIn YouTube
United Wealth Group LLC Home

United Wealth Group LLC

(732) 355-1050

 
Home NavigationMENU
  • About 
    • Mission Statement
    • Team
    • Products & Services
    • Useful Links
    • About Guardian
    • Careers
    • United Wealth Group LLC Website Terms of Use
  • Strategies 
    • Living Confidently
    • Financial & Emotional Confidence Quiz
    • The Reality of Life
    • The Living Balance Sheet®
  • Resource Center 
    • Retirement
    • Estate
    • Investment
    • Insurance
    • Tax
    • Money
    • Lifestyle
    • Small Business Webinar Series
  • Tools 
    • Glossary
    • Tax Resources
  • Contact
Money

The 12 Steps to Living Confidently: Smart Debt Decisions

Is debt the D in our DNA? Seems to be. The day after a Stone Age genius invented the wheel, a fast-talking salesman was probably advertising hot deals—low cost financing!—on a new set of wheels. Going into debt—using someone else’s money to buy something we want—is still how many of us pay for big-ticket items like cars, houses, and college educations. But should it be?

When we look at the most financially and emotionally confident Americans, they are long-term planners with clear and attainable goals who live within their means.

Maybe you’re currently more of a Day to Day Decision Maker, Ambitious Spender, or Retirement Realist. That’s OK. Learning the behaviors of the financially and emotionally confident, and becoming savvy about debt, can help you down the road to living confidently, no matter your DNA. Here are some tips to help you make smarter debt decisions:

Keep your mortgage payment to 15% (or less) of your gross monthly income. Let’s say your household makes $60,000 in pre-tax income. That’s $5,000 per month. So, you should try to keep your monthly mortgage payment at or below $750. Higher mortgage payments squeeze out your ability to save, can make it difficult to afford other necessities, and can tempt you to put those necessities on credit cards. Don’t try to keep up with Joneses. The likelihood is that they are being crushed under the weight of the debt of their brick McMansion. Use a budget worksheet to find out what you can comfortably afford.

Don’t rush to pay off your mortgage. Keep up with your payment schedule, but don’t be in a hurry to pay off your entire loan. (Unless you’re close to retirement – see below.) Mortgage interest rates are currently around 4%, and that’s cheap money compared with other lending sources. Plus, mortgage interest is tax deductible, which helps you save money. If you can refinance at a significantly lower rate, go for it, providing the fees aren’t too high.

Take big swings at credit card debt. For starters, stop using the card. Try to pay more than the minimum, and be on time. If you can’t pay off your balance, try, for example, sticking to an amount above the minimum that you can afford and set up an automatic payment. Carrying a large balance forward on your credit cards is like pushing the same boulder up the mountain, month after month. You’ll never get out from under the obligation. Also, you’re subject to escalating fees for each late payment you make.

But don’t strike out on protection. It’s also important to remember that you still want to have protection measures in place, or at least be actively building them, while paying down your debt. This includes things like a six-month cash cushion and appropriate insurance coverage. Allocating every dollar towards paying off your debt without building up your savings cushion is a classic mistake. Why? You could pay down all your debt, then be hit by an unexpected expense, and go right back into debt again.

Ride into retirement debt-freeish. As you get older, your income typically decreases and major debt can become a problem. Try to pay off your mortgage before you retire. If you have credit cards with high interest rates, use them less frequently and pay them off promptly. The less you owe, the more confidence you can have that your retirement income will see you through.

Finally, get help if you need it. If you’re struggling with debt, or just want to improve your financial outlook, there are experts who can help. Financial professionals are trained in the art of organizing your finances and can walk you through the steps to becoming financially and emotionally confident.

Brought to you by The Guardian Network © 2017. The Guardian Life Insurance Company of America®, New York, NY

2019-85400 Exp. 09/21

Share |
 

Related Content

Keeping Up with the Joneses

Keeping Up with the Joneses

Lifestyle inflation can be the enemy of wealth building. What could happen if you invested instead of buying more stuff?

Financial Hacks for Millennials: The Great Wealth Transfer

Financial Hacks for Millennials: The Great Wealth Transfer

Have you heard of the Great Wealth Transfer? If you’re a millennial, it will likely be of particular interest to you, as it may involve an inheritance coming your way. But do you know how you would handle a large influx of money? How millennials manage their wealth in the coming years will play a large role In achieving financial confidence.

Paying Off a Credit Card

Paying Off a Credit Card

Enter various payment options and determine how long it may take to pay off a credit card.

 

Have A Question About This Topic?









Thank you! Oops!

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2022 FMG Suite.

This website is intended for general public use. By providing this content, Park Avenue Securities LLC is not undertaking to provide investment advice or a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.

Nick Saleem

Securities products offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC.OSJ: 355 Lexington Avenue, 9 Fl., New York, NY 10017, Phone # 212-541-8800. PAS is a wholly owned subsidiary of Guardian Life Insurance Company of America® (Guardian), New York, NY. United Wealth Group LLC is not an affiliate or subsidiary of PAS or Guardian. AR Insurance License #2973673. CA Insurance License #0H03588. 

Asghar Kazim

Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 355 Lexington Avenue, 9th Floor, New York, N Y 10017- 6603, Phone # 212-541-8800. PAS is a wholly owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY.  United Wealth Group LLC is not an affiliate or subsidiary of PAS or Guardian. California Insurance License # 0C53306.  AR Insurance License #703269.

This Forbes award is not issued or endorsed by Guardian or its subsidiaries.
Important Disclosures

Online Terms of Use

Online Privacy Statement

2021-126035  exp 8/30/23

Contact

United Wealth Group LLC
Office: (732) 355-1050
Fax: (732) 355-1051

Princeton Executive Center
4301 Route 1 South; Suite 220
Monmouth Junction, NJ 08852

FINRA Series 6, 7, 24, 63 & 65

akazim@unitedwealthllc.com

LinkedIn YouTube

Quick Links

  • Retirement
  • Investment
  • Estate
  • Insurance
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations