Financial stress has been increasing among Americans due to economic instability combined with a lack of personal savings. Many Americans are caught in a vicious cycle of high debt and high interest rates and turning to credit cards to cover basic living expenses. Credit card balances and delinquency rates are increasing and household debt limits are soaring. Times are tough for many.
A CNBC poll shows 70% of adults feel financially stressed. More than half of those surveyed said they’re living check-to-check and experiencing more anxiety over finances than before the pandemic began. The federal deficit nearly triple to more than $32 trillion in the last nine months and Uncle Sam isn’t leading by example. In nine months, the Government paid $652 billion in interest on our country’s insurmountable debt barely making a dent in the balance owed. No wonder the average working adult thinks, “if our Government can’t get a handle on debt, how can I”?
Worrying about finances can be hard to control but seeking education on personal finances can offer peace of mind and provide a strategy for getting out of debt. The first thing you should do is track your spending. Mark Henry, our CEO, discusses the “Snowball Method” of getting out of debt in a YouTube video and discusses tracking spending to reduce it. Spend a little less at the grocery store and cancel a couple of entertainment subscriptions, the savings add up quickly. After that, focus on paying off small balances first before working on larger balances.
Speaking with a financial advisor in person can be extremely helpful in many ways. You’ll have someone on your side who will give you the tools and resources you need to break the cycle of check-to-check living. Even when times are tough, it is possible to make small changes that make a big difference. Alloy Wealth Management helps clients both understand, and better define their financial goals and we would love to help you learn to pay down debt while saving towards retirement. Call 800-689-3935 to speak with one of our financial advisors.