Just because you have a great career you love doesn’t mean you don’t need credit counseling. Oftentimes successful people opt for debt consolidation as a way to improve their personal financial situation and eliminate credit card debt. According to a recent piece by fool.com, recent data by ValuePenguin shows middle-aged Americans have the highest credit card balances compared to any other age category. Many middle-aged people ages 45 to 54 have stable careers and own homes yet they feel overwhelmed by credit card debt. The data by ValuePenguin indicated the average middle-aged borrower owes about $9,000 in credit card debt. “Generation X” debt is about $3,000 more compared to members of the millennial generation. In addition to consolidating debt with a debt management plan, consider other ways to solve the challenge.
When earning more means spending more
People who earn more money also tend to spend more. While it’s difficult to change your lifestyle, consider going back to the budget you had when you were just starting out. Swap out expensive gourmet products for generic brands.
When children monopolize your bank account
Another challenge for middle-aged consumers is the cost of raising children. Teenagers and young adult children are particularly expensive. Experts say college costs for children often eat up your income when you hit your 40s and 50s. Instead of spending all your money on home repairs, college costs and clothing, set aside money for a debt management plan. When you pay off the debt management plan, you no longer have the “bad debt” from credit cards. You can take the money you spent on paying credit cards to save for retirement and other savings goals.
Experts suggest identifying all of your credit card bills and paying them off. Debt consolidation is an easy and convenient way to reduce debt in less time. In fact, some people who rely on Christian credit counseling embrace a completely debt-free life. It is important to eliminate bad debt before you become cash-strapped on a fixed income in your 60s and 70s. While self-control is one factor for getting out of debt, another factor is to have a reasonable strategy.
At Christian Credit Counselors, we help consumers by giving them a realistic timeline for paying off all their credit cards. We also work for you to reduce your interest rate on the credit cards paid through a debt management plan. For more information on debt consolidation, please contact us.