Millenials: Stop “Saving” for Retirement

Credit & Debt , Credit & Debt Settlement , Saving

The big mistake is that we’re using misleading language when it comes to retirement.

New employees will be familiar with this: older colleagues incessantly bombarding you with advice to start saving for retirement as early as possible. Personal finance books go on about why it’s essential to save for retirement. Surveys are done and studies get published about how much you should be putting away for your golden years.

Sure, it only seems logical. You’re putting aside money for the future and letting it grow over the years, which is the definition of saving. But the very word ‘save’ has a double meaning. What you’re doing is putting money into an investment portfolio for retirement.

It’s important to acknowledge that you are now an investor, no matter if you have a 401(k) or IRA. You are now putting your money to work for you in the stock market instead of letting it sit stagnant in a savings account.


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Avoid Making this Mistake

Make sure that when you are setting up your 401(k) that you are selecting actual investments, and that you are not literally saving into your account. Sure, at the maturation of your policy, you may get a decent lump sum, but it would not be enough to comfortably retire. It would also be a huge discrepancy from what you could make if you properly invest the money and reap the benefits of compound interest.

To do some simple calculations, if you end up putting an average of $500 per month into a 401(k) for 40 years estimating an average 6% market return, you would end up with $933,714.65 upon retirement. But if the money just sat in a savings account it would only yield $240,000 upon maturation based on the market average 0.01% annual percentage yield on their savings accounts. Even with the highest savings rate of 2%, the money in savings would not exceed $370,000.

If you have a 401(k) or IRA, it would be prudent to check in on it, and make sure that your contributions are going into your investment portfolio to maximize your return upon maturation.

Stop Procrastinating and Take Control

One main reason that people often procrastinate about adjusting their 401(k)s is that they don’t understand all their investment options. There are many terms like mid-cap, large-cap which can confuse and intimidate people from confronting what they do not understand.

There is rarely any guidance as to which investments are best for an individual’s risk tolerance or time frame for maturation. So how does one go about learning how to set up an investment portfolio that is aligned with their personal interests?

How to Get Started

The simplest way to make sure you are on the right track is to consider a target-date or life-cycle fund. This is directly related to when you decide to retire and these funds are usually offered in 5 year increments.

You can also set up your fund to start with an aggressive portfolio, and rebalance it to become more moderate and eventually conservative as it approaches the set retirement year. You should start off aggressive and take more risk when you have time to withstand the variations of the stock market

There are those that say that target date funds go hand in hand with higher fees, which takes away from the future you. What that means is that one can end up with an investment portfolio that starts off too conservative, missing out on critical returns in the first few years.

Whichever method you choose, make sure that your money is being invested and not saved in a retirement account. If you need any other financial advice, feel free to reach out to the Financial Helpers. We are ready to assist you.


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Student Loan Debt Isn’t Just a Young Person Problem

Credit & Debt , Credit & Debt Settlement

When you think of student loan debt, the image that comes to mind is someone 25-30. They have their whole life ahead of them. We sort of shrug off the student loan debt problem until we see the consequences of it firsthand. Yet, it’s not just a problem for younger generations. It’s also plaguing senior citizens in their 60s and 70s.

Of the 44 million Americans struggling to pay back student loans, about 3 million of them are 60 and older. They still hold as much as $86 billion towards the $1.53 trillion that’s owed. This data was made public by the Consumer Financial Protection Bureau. Just two years ago, that number was significantly smaller (but still large) at $66.7 billion.

That goes to show that the population ages, there will be many people who hit retirement age still unable to pay off their debt.  They carry it with them throughout their lives and it’s a devastating burden. Because they have no choice but to pay it off, many seniors are using their Social Security payments to keep up. That should never happen in this country!

Older Americans Going to College

A lot of the student loan debt isn’t so new. It’s not unheard of for someone in their 40s and 50s to decide to get a degree. They don’t realize the burden they’re putting themselves under by doing so. The debt problem wasn’t as pronounced back when they were younger and probably expected to be able to take care of it. They thought wrong.

One such person is Seraphina Galante. She’s a 76-year-old woman who still owes $40,000 in student loans. She decided nearly twenty years ago that she would go back to school to get her master’s degree. She didn’t think she’d have any problem, with a master’s, paying back any of the student loan debt. She was wrong.

“I was very confident that … I would pay it back, you know, in due time,” Galante said. “We grow older and then we get more senior. That’s reality of life. I don’t see the justice or even the logic. It’s not gonna reduce, ever. And the emotional part of it that it’s there. That it’s always gonna be there,” Galante said.

Just a few years from 80, Galante is forced to work. She helps out as a caregiver consultant, only able to work part-time. She has no choice but to make the $176 per month payment she doesn’t believe will ever get paid off. That’s because the government will definitely seize Social Security benefits to pay off student loan debt. It’s driving older Americans into poverty.

Student Loan Debt a Campaign Issue

Student loan debt is becoming such a major problem that it’s on the radar for many 2020 Democratic candidates. One clear example is Elizabeth Warren who wants to cancel up to $50,000 worth of debt for millions of Americans. She knows this will help them get on track with their lives and not live in fear of missing a payment.

“We got into this crisis because state governments and the federal government decided that …  they’d rather cut taxes for billionaires and giant corporations and offload the cost of higher education onto students and their families,” Warren wrote in a blog post last month, adding, “It’s time to end that experiment.”

77% of likely Democrat voters said they were in support of Warren’s plan. 57% of all Americans do as well, according to a poll from INSIDER. 21% are in opposition to it, as that cancelation would mean the government is out that money, wasting over a trillion dollars’ worth of taxpayer funds.

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4 Ways to Simplify Your Financial Life

Credit & Debt , Credit & Debt Settlement

These days, there are way too many people who graduate high school and college who have never sat down and learned how to balance a checkbook. Most schools use home economics as an elective, which is easily passed up by the guys especially.

The problem with this is, once those students become adults, they find their finances are way too complicated. It’s nothing but a big ball of stress, which leads to procrastination, then late fees. And don’t get me started on the burden that is tax time! (thank goodness for H&R Block, right?)

Many of these same people often spending hundreds or even thousands of dollars per year on overdraft fees or battle their paychecks week-to-week because they can’t get a grasp on what they’re doing financially. It becomes a vicious cycle that’s easily fixable by taking the time to learn how to budget.

By taking a few simple steps, not only can you reduce the stress forces you to procrastinate in getting your budget in order, but it can save you A LOT of money in the long run.

Here are several tips to making the process easier:

1) Get Realistic about Your Budget

Only you know the state of your finances, so you should sit down and make realistic goals about changes you need to get things in order. It’s not going to be an easy process at first, but once you get there, you won’t regret it!

Write out a plan of action. Gather all your financial paperwork. Have folders for each bill with receipts. This will make life so much easier for tax time. Plan out your expenses. Once you have a plan of action, the rest will fall into place.

2) Too Many Accounts?

If you’re like a lot of Americans, you have more than one account opened. Perhaps you have several investments, more than one bank account, or even retirement accounts from jobs you no longer work at. Of course, these accounts were opened for a good reason at the time, but what about now? How many accounts do you have open that you don’t need anymore?

A good step in simplifying your financial lifestyle is consolidating accounts and closing the ones you don’t need anymore. Each one you leave open is just more paperwork to keep track of and fees you’re paying flying out the window. There are aspects to this you should be watchful of.

For example, if you bank with the same place who holds your mortgage, you should have a free checking account with them. If you were recently married and the both of you have separate accounts, consider the benefits of merging into one bank account to save on fees and making budgeting easier.

3) Don’t Get Complacent with Your Insurance

One big mistake people make is choosing an insurance company and sticking with them. If they consistently offer the lowest rates and highest level of customer service, it’s completely understandable. But a lot of people don’t even bother to look around for cheaper rates after a year or more.

The truth is, a lot of people are paying a premium price for crappy insurance. As time goes on, it’s simpler to renew coverage with the same company rather than researching for better deals. Your expectations will change, and so should your insurance. If you rent, then it’s a smart idea to get renters insurance.

Rather than buying renters insurance with a different company, you can save money by bundling with your car insurance. After you have a decent record of paying your bills on time, you remain accident free, and even improve your credit score, the rate you have to pay may fall. But don’t leave it to your current insurer to lower your payments though.

If you want to save money and get the best rates, take the time to reevaluate your needs and shop around for the best coverage. It’s not an easy process, as you’ll have to get quotes from a variety of different insurance companies, but it can save you hundreds of dollars per month.

4) Take a Good Look at Your Credit Cards

Just like most people have multiple accounts open, they also have more than one credit card. Maybe you fell victim to the credit card booth when you were in college (the promise of free credit too hard to pass up), but you didn’t do that much research on what you were getting into. This can destroy your credit in the long run.

In fact, I know people today who got bit in college and are STILL paying back those debts now that they’re in their 40s. That’s why you need to pay special attention to your credit cards. Study each other, their reward programs, and determine their value in your life.

Getting a Best Buy credit card for the ‘extra points’ isn’t worth the extra interest. It really offers no value to you. A lot of cards have fancy names, but are either duds or are a drain to the consumer if they don’t know how to use the card correctly. Before you know it, you’ve racked up thousands in debt.

That’s why it’s important to know exactly what you need and cut out the rest. Yeah, maybe you like the idea of having 3 or more credit cards, but what’s the real advantage?

The idea is to simplify your life. There came a time when I sat down to budget everything out that I realized I wasted $100/month on subscriptions I barely use. Why pay for Hulu when I only use it once or twice? Write everything you spend down, create a budget, consolidate accounts, and check your insurance rates regularly.

It won’t be easy, but once you figure it out the first time and can better manage things, you’ll save time and money in the long run.

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Is It Possible to Go to College Without Student Loans? Try These 5 Options First

Credit & Debt , Credit & Debt Settlement

It seems so easy for someone who wants to go to college to take out student loans. All they have to do is sign the dotted line and the money they want is right there. But if you ask anyone currently paying off their student loan debt, you’d hear a lot of stories of struggle. 44 million Americans currently owe $1.53 trillion towards their loans.

Student loan debt is forcing young Americans to put off major life goals. They simply can’t afford to do them with this weight on their shoulders. Many can’t even afford the minimum monthly payments. And again, when you see how much tuition is, it’s easy to resort to loans. The solution is to save loans as the last possible resort or it can hamper your life later.

In many cases, parents have tried to save for their kid’s education. Yet, even they weren’t prepared for the major cost, especially if they have multiple teens in their home ready for that next stage of life. Fidelity conducted a survey that found parents were overwhelming underprepared for their child’s college education costs. That leads them to resort to student loans.

Before you take out a mortgage just to pay for your education, you should look at these other options. By doing them all, it’s possible to pay for school on your own. Even if you still have to take out some student loans, at least the burden will be lessened.

1) Scholarships Are Available

Listen, there are scholarships for everyone out there. Regardless of your child’s major, interests, skin color, race, culture, there’s someone out there who has put up a scholarship. The problem is, it takes a lot of diligence to go out of your way to research all the different types. Then you have to sit down and apply for each one you’re eligible for.

Don’t just apply for the big scholarships either. Every little bit will help bring down your student debt balance by the time you’re finished with your degree. Sallie Mae reports that scholarships can cover as much as 28% of tuition on average. That’s a major chunk taken out of your student loans if you can take the time to apply.

2) You Don’t Need to Go to an Expensive School

At the end of the day, a degree is a degree. You may thing there’s some prestigious mentality to going to a big four-year school, but really, there’s not. There’s no shame in getting your Associate’s degree at a community college, which would save you a ton of money in the long run. In a lot of cases, lower-income people can escape community college debt free.

Many states like Kentucky, Ohio, Tennessee, West Virginia, and Virginia have free tuition to smaller colleges for students. More states are starting to institute programs like this to give young adults a good head start. By going to a smaller school and then getting their Bachelor’s at the school of their choice, will pay only a fraction of the student loans. Saving money is about making better decisions.

3) There’s Federal Aid Available

Last year, high school graduates left behind $2.3 billion in unclaimed federal financial aid. They chose instead to take out student loans. Many students qualify for financial aid through the government. It combines grants, loan offers, and scholarships in a program called FAFSA. It’s free to fill out an application.

Many students don’t run towards the FAFSA because they feel it’s time consuming to fill out. The problem is, by doing it, they can save $3,583 per year. That can go a long way towards paying for books, putting a dent in tuition, and other housing costs. Again, every little bit helps to bring down your total debt.

4) Get a Job

Yes, we get it. The last thing you want to do when studying for classes is to have to worry about a job. But many people have to do it in order to survive. It will be hard work, but you’d be thankful in the end if you do. Between scholarships, aid, any savings you had before, getting a job can take care of the rest. It certainly beats paying student loans for the next 10-20 years.

There are plenty of side-hustles and jobs you can do in your spare time. Driving for Uber is one. Do whatever you can to pay off as much of your room, board, and tuition while you’re in school. You will thank yourself later on! You can even do a work-study program through the university or college. They are needed jobs that need to get done around the campus.

5) Have Your Job Pay for College

Another great thing about working while in college are the various job programs out there. Companies like Starbucks, Walmart, Publix, and Wells Fargo all help workers pay for their tuition. If you work 20 hours a week at Starbucks, then you qualify for their Starbucks College Achievement Plan.

You have to work at Publix for about six months before their plan kicks in. If you average around 10 hours a week at least, they can help pay up to $12,800 of your tuition. Wells Fargo will straight-up reimburse tuition for their workers up to $5,000 each year. Their children can even apply for certain scholarships worth up to $3,000.

Many other companies offer some tuition assistance and will help pay off your student loans. Even after you graduate, many large companies offer a program that works like your 401(k) that will pay off student debt. It’s worth the check to see if your work offers any kind of assistance.

At the end of the day, any little bit you can knock off your tuition will be worth it in the end. No one will care where you got your degree from. There’s no shame in spending less and going to a community college. Taking the time to apply for aid and assistance is worth it considering the thousands in extra interest you’d have to pay on that later. And working a job won’t be too difficult. Many thousands of college students make it work.

If you still end up needing more money, at least taking out student loans won’t be too much of a burden and your total is reduced by thousands of dollars.

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6 Reasons Why You Should Actively Work to Repair Your Credit

Credit & Debt , Credit & Debt Settlement

Your credit score is incredibly important. Having a good score can help you in a lot of ways. It can even save you during an emergency. If you needed to take out a loan, for any reason, having good credit is helpful. It can save you thousands of dollars when making large purchases with credit and on interest.

Sadly, a lot of people take their credit for granted. They don’t protect it. It’s there as a plaything. If you want to buy something you can’t afford, they’ll just pull out the plastic. They’ll keep doing that until suddenly they can’t even afford minimum monthly payments. That’s when the real trouble begins.

From a young age people should be taking care of their credit. And if it’s in bad shape right now, be more active! You can repair your credit. It will take some time, but don’t just sit on your hands and let it deteriorate. By putting the ball in your court, you can actually save yourself grief in the future. Here are 6 reasons why you should actively repair your credit.

1) Your Credit Report Might Have an Error

Here’s a statistic that might hit close to home: 1-in-4 reports have an error. That’s no joke! The Federal Trade Commission did a study and found that 1-in-4 credit reports have an error on them. That can directly harm your credit score! One-in-twenty reports had a major enough of an error that it dragged their score down 20 or more points.

You also have a 1-in-4 chance of being defrauded by a credit card scammer. These are real numbers. If you’re not careful, it can certainly happen to you. Millions of Americans each year become victims to credit card fraud. By keeping up with your credit and repairing when necessary, you can catch these problems early.

2) You Can Refinance Your Loans

There may be a time when your debt overwhelms you. Rather than just sitting back and letting it pile up with more interest, act! If you have a good credit score, you can combine all your debts into one, smaller monthly payment. Having a better score means better rates and less interest paid overall.

Your credit score will determine the rates when money is lent. As the economy dips or improves, this can change over time. The Feds change the overall interest rate. But if you have a great score, the lower your rate will be overall. Having lower payments can surely improve the quality of your life and make your debt more manageable.

3) It’s Easier to Get Approved for Financing

If you have a major need for financing, it can be a stressful process. Mostly you don’t know if you’d get approved. If you don’t have a strong credit score or a good record of spending, this will cost you. To wait around to find out if you got approved, only to be denied, is even more frustrating.

That’s where having a good credit score makes life easier. There’s much less of a chance of being denied. There are to major factors in getting financing approved. The first is your credit score. The second is the amount if income-to-debt you have. By repairing and maintaining your credit, it’ll be much easier to get approved.

4) You’ll Be Mortgage-Ready

One constant in life is that things are always changing. You might find yourself in a good spot right now, but what if you or your partner become pregnant? What circumstances would you need to upgrade your living situation and do it quickly? Renting isn’t always a good option these days. The price of rent continues to shoot for the moon.

Even if you’re not expanding your family, but just think it’s time to buy a home, you need to be ready. Your credit score is going to be a huge factor in determining whether you get approved. It can even save you down the line with a lower interest rate on that mortgage. Even a half percentage point can mean thousands of extra dollars if you’re not careful.

5) You Can Buy Things as Advertised

Don’t you hate car commercials that go on and on about discounts and low monthly payments? Well, you’ll be frustrated if you go into a dealer and ask for those prices. Those prices aren’t for you, my friend. They’re for the person who has spotless, perfect credit. They’ll advertise all the incentives in the world to get you in the door, only to shut you down.

No interest for several years, the no-money-down deal, yep, hands off! That doesn’t mean you’ll be completely denied an auto loan, but your credit makes an impact. If you spent time repairing your credit before buying a vehicle, those incentives can save you A LOT. We’re talking thousands of dollars over the life of your loan.

6) Discounted Car Insurance

A good credit score isn’t just good for lower auto loan rates. It can also save you with insurance, too. Most companies choose the rates based on your score. What your credit score has to do with driving, no one knows. It’s just an excuse for them to jack up your rates if you don’t have your affairs in order.

Overall, taking the time to repair your credit score is completely worth it. There are many discounts and incentives you will receive. Life will be much easier when you can get better rates, lower payments, and quick approvals. On the flip side, bad scores can really hurt you massively. Repair your credit while you can.

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How Debt and Money Problems Often Lead to Divorce

Credit & Debt Settlement

Do you regularly fight with your spouse or significant other about money? If so, you aren’t alone. Of all the stressors that can often pop up in a relationship, money is usually the worst. In fact, a survey conducted by SunTrust bank found that money problems were the number one cause of friction within marriage. Debt is a major factor that leads to divorce, including student debt.

A lot of it has to do with how much money impacts our everyday lives. When there are money problems, it makes life more difficult, no matter who you are. The strain can be too much to bear, even if you’re single. Throw in a marriage and kids and you will start to see the stress levels soar tremendously.

If student loan debt is ruining your life (and your relationships) give Financial Helpers a call. We’d love to talk with you about your options. You can reach us at:

Call Now 844-332-2079

Spenders vs. Savers

The tension seen in relationships over financial issues actually comes from each partner having a different view of money. It’s especially true when a couple is new to the whole marriage dynamic. Most of us, unless we marry super young, are used to living more freely and not having to pay super close attention to the budget.

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Once the ring goes on that finger, suddenly you’re budgeting for two, then three or more people if you have kids. That’s added strain and responsibility without addressing the fact that you need to budget your money better. Once you buy the house and upgrade the car, that’s more payments and higher debt.

The Debt Problem

80% of Americans are currently in debt. That’s quite the staggering number! What’s even worse is, 1 in 5 people in a relationship claim to hide money from their significant other, or spent at least $500 without telling them. This might explain why more than half of all marriages in the U.S. end in divorce and why money is the leading cause.

Spending is usually the culprit.

The Cost of Divorce

The problem with couples who divorce over money issues is that the act of terminating their marriage is often quite costly and can set them back for a long time to come. There are many benefits to marriage financially and the best option is to always work it out and learn to be honest with each other about money.

Here are some of the costs of divorce:

-You pay less in taxes when you’re married. That means when you’re back to being single, you end up giving away more of your income than if you stayed together.

-Real estate expenses. Rather than two people with two incomes living in a home (which is often manageable), suddenly you have to do it all on your own. It doesn’t matter if you keep the house or are the one who moves out. You now have to pay for living expenses on your own.

-Capital gains. Do you and your partner have investments? You can’t keep them, often slicing into your gains with a capital gains tax.

-Divorce is expensive. It’s even more expensive if the divorce is contested. It can cost as little as a few hundred bucks, but that’s only if things go perfectly. The average cost of a contested divorce in the U.S. is between $15,000 and $30,000 according to Legal Zoom. Most divorce lawyers charge around $75/hour, which can add up quick.

-Self-care. Divorce is a heavily emotional time for families, especially if it involves kids. They can be impacted for the rest of their lives by this, often resulting in counseling to help deal with what they might consider a trauma.

-Insurance. Usually, you can put your whole family on your insurance and pay a single price, but after a divorce, you’re responsible for paying it on your own.

This goes to show that if you and your spouse fight a lot about money, or you plan on getting married soon, you need to have a serious talk about money. Go over ways to save and express your desire to be open and honest about all expenditures. Work out the budget together each month to ensure you’re both on the same page.

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As Student Loan Debt Grows into a Crisis, Credit Card Debt Soars

Credit & Debt Settlement

Student loan debt continues to rise into the stratosphere. This type of debt is creating a financial crisis for millions of Americans. When you have a ton of student loan debt, it forces you to change your spending habits. Yet, you still need to pay your bills on time. How are people doing it? Relying on credit more than ever before.

According to a new report from WalletHub, the amount of credit card debt held by Americans has hit the $1 trillion mark.

The amount of debt added in 2017 was astronomical, which totaled around $92 billion, pushing the total to the new record high. Housing, auto, and student loan debt have already gone over the trillion-dollar mark respectively. This means Americans are stacking debt upon debt.

If you’re struggling with student loan debt, Financial Helpers is here! We’d love to help you take care of this problem before it engulfs your whole life. Give us a call at:

Call Now 844-332-2079

Student Loan Debt Crisis

Alina Comoreanu, one of the researchers at WalletHub who helped create the report, believes this isn’t about consumers weakening financially, but pre-recession bad habits that continue to this day. When the economy is doing well, more chances are taken to obtain credit for large purchases.

The amount of credit card debt the average American family holds is at a record high of $8,600, which is higher than it was even at the peak of the recession. As long as they are paying off their student loan debt, they don’t mind stacking their debt to pay off at a later time.

The economy is showing major signs of improvement with high confidence in President Trump’s economic policies. This can be a good sign that consumers are confident in their ability to pay back the debt. The promised tax cuts also likely played a part in creating consumer confidence. Still, there’s a lot of concern and reasons to worry.

The student loan debt problem isn’t going away anytime soon.

The problem is, the debt is stacking up. The Federal Reserve reports Americans aren’t paying back their credit card debt. This will only escalate the same problems that caused the recession in the first place. Rising incidences of unpaid debt is a major concern for banking systems across the country.

Taking Care of Credit Card Debt is Easier than You Think

Right now, in the U.S., there are millions of people struggling with credit card debt. It starts off with the belief that you’ll be able to pay it back, but often, it doesn’t work out that way. As regret builds and the bills keep coming in, that forces a lot of people to rethink the way they handle their debt.

http://financialhelpers.com/high-student-debt-is-crippling-the-nations-service-professionals/

Deciding to take care of your student loan debt problem is a lot like going on a diet. You know you have a problem. But, the second you step on the scale and see the numbers, it creates a sense of hopelessness. It can be daunting to see the numbers and realize it will take years of hard work to get back in shape.

If this sounds like you, there is good news! Student loan debt relief is possible and you can get it off the books in as little as 1-2 years. There are options out there that will allow you to not just pay it back quickly, but even to pay less than what you currently owe. You have to know your options.

Call Financial Helpers today to learn what options you have for taking care of your student loan debt.

Call Now 844-332-2079

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Financially Struggling Baby Boomers Common

Credit & Debt Settlement

When we talk about debt in the United States, and how total household debt is at its highest level of all time ($13.2 trillion), it’s easy to think, “Those darn kids and their fancy houses and useless degrees!” In reality, a lot of older folks are financially struggling as well.

We’ve constantly written about millennials and their apparent lack of financial understandings that has lead us to this point, but it’s certainly not just the younger generations. Even the oldest generation has a part to play in our current economic epidemic.

Baby boomers 55 years or older have an average of $73,211 worth of debt per household, according to a report from U.S. News.

In reality, this debt isn’t from a lack of financial literacy, but the fact that they were ill-prepared for how the rest of their life turned out. Baby boomers are living longer and are much healthier than their parents and grandparents, thanks to advances in medicine and technology.

As we’ve previously reported, women are particularly at risk, because they are living longer than their husbands and haven’t been the ones to get active about investment or saving money. That role has always belonged to the men, but it’s something that needs to change.

Americans Aren’t Saving Money

According to Bankrate, 2/3 of Americans have no money saved. They wouldn’t be able to scrape together $1,000 if they had an emergency. It’s tough out there for average Americans, who can be bankrupted by a single event, like a car accident that forces them to miss time from work.

For the older generation, the risks are much higher. They’re much more vulnerable during events, like natural disasters, a death (usually their spouse), or a crippling illness. And when these issues crop up, in a much more frequent fashion, they don’t have the time out-earn these problems.

Also: http://financialhelpers.com/you-wont-believe-how-much-debt-has-changed-since-the-great-recession/

This is a major issue that can be passed down to their children when they die. There have been numerous cases where a debtor will come knocking to collect debt owed after a parent passes, especially if they left their house and there’s money still owed.

For seniors in this situation, the solution is the same for every American. Because they are extremely vulnerable financially, they must be prepared for everything that might happen. They need to better budget their income by figuring out how much debt is owed.

Getting Help

Making a single phone call to Financial Helpers can help. We are experts at helping people just like you climb out of their debt and find financial freedom. You can call us at the number below:

Call Now 844-332-2079

Without help to consolidate or refinance your loan, you’re going to have to figure out a way to do it on your own. 1/3 of all Americans don’t even have a budget plan, and it’s hurting them later on. When an emergency happens, they’re worse off financially than they were before. This sinks many good families into bankruptcy.

Seniors have a few other areas of help they may not realize. They are the generation that is least likely to be computer literate. Various apps and programs are designed to make it easier to financially budget

One of those apps is called Tiller, which doesn’t require extreme computer skills to learn. It’s simple to use and can help you get on track with creating and maintaining a budget. There are apps like GoodRx that can save you 90%.

No matter the stage of life you’re in, it’s always a good time to learn financially good habits. You’re not exempt from needing to save, even if you’ve been around awhile and never had any problems before. Times have changed, and so has the way we need to save.

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4 Strategic Steps to Help You Get Out of Debt Forever

Credit & Debt Settlement

The Federal Reserve Bank in New York estimates that the total amount of household debt in the United States has reached $13.21 trillion.

Debt is something we’re all ashamed of. We want to live the perfect American dream, but circumstances haven’t always been present in the last decade to make that happen. So, we’ve had to beg, borrow, and (hopefully not) steal to get by.

From credit card debt, mortgages, and auto loans to student debt, we’ve piled it on and can find ourselves drowning in it before even hit 30.

People who find themselves under mountains of debt struggle even more because they don’t know how to get out from it, especially if there’s a change in income.

What you need is a proven strategy designed to get you out of debt once and for all. Here are four steps you can take:

1) Start by Building Your Savings

One of the most important things Americans need to have is savings stashed away for a rainy day. Yet, according to a survey, the vast majority of us don’t even have access to $400 if we needed it. That’s a scary statistic!

You can’t gain financial freedom without having some money put away in case you need it. Believe, that day will come. That day could be today and you’d be out of luck. Talk to your bank and create a savings account where a certain percentage of paycheck is automatically deposited.

You’ll also want to start an account that’s designed for spending. You’ll probably have to live as lean as possible to get through your debt crisis while saving money for an emergency, but if you have a few extra bucks, toss them into the spending account and they’ll add up. You can use that money for whatever you want.

2) Consolidate/Restructure Loans

There are options out there designed to help you take care of your debts. Most people don’t even take the opportunity to check if they qualify for these options. Restructuring your loan can save you hundreds of dollars per month. Consolidating can combine several loans into one single payment.

One good way to determine if you’re ready for a restructure is by your credit score. If you got a loan when you were younger and your score wasn’t that good, you probably were slapped with high interest. As your score improves, you can be trusted and have your interest lowered.

If you wonder about qualifying for lower interest payments and whether you can consolidate, gives us a call here at Financial Helpers. We’ve helped thousands of people by negotiating better deals with their debtors and lowering their rates, saving them thousands. Call us at the number below today to see how we can help.

Call Now 1-844-332-2079

3) Attack Your Loans

If you have multiple loans and can’t consolidate them, then there’s a method available to help you decide which loan to tackle first. Garrett Gunderson, chief wealth architect at Wealth Factory, says the best way to do this is by using the “Cash Flow Index”.

Take the balance of a loan and divide it by the minimum monthly payment. The answer should determine which loan is eating most of your cash flow and should be paid off first. If it’s below 50, then that’s a high cash flow loan. If it’s over 100, then you have a more efficient loan.

The idea is to show you’re improving your debt to income ratio. Paying off the lowest cashflow loans first will help you do just that.

4) Be Wary of Investing in Assets

You might think having an investment is a great way to secure future wealth, but at the current moment, it’s dangerous to do, especially if you have high debt. The debt is seriously risking your family’s livelihood and needs to be dealt with. If you can, the best course of action is to cash out and put the money towards your debt instead.

“Money is so accessible and available. People have created a massive amount of debt because we’ve become a society that’s not about the cost of the purchase, but the payment behind the purchase. People look at what they might be able to afford based on the payment not considering any mishaps, emergencies or other issues that may happen along the way,” said Gunderson.

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You Won’t Believe How Much Debt Has Changed Since The Great Recession

Credit & Debt Settlement

The Great Recession that hit a decade ago was a tough time for millions of Americans.

One of the reasons for the recession can be explained is how Americans spent their own money. Debt (and debt payments) grew so large that there was a steep drop off in consumption. The situation was much more detailed than that, but household debt reached a peak and the trouble flowed in every direction.

If people weren’t spending money to pay off their auto loans, mortgages, and other debts, then those industries struggled to keep their head above water. As foreclosures continued to pile up, Americans ultimately spent less and less money.

It required massive bailouts by the federal government to get us out of the mess, but that doesn’t mean Americans have made smarter financial decisions to prevent another Great Recession from happening.

In fact, our debt is higher than it’s ever been in the history of this country. Mortgage debt is lower than it was in 2008, but all other forms of debt, like credit card debt, auto loans, and student loans, are 45% higher! That’s an absolutely shocking number.

We’ve been cranking up our debt at a rate of 3.4% each year and set to cross $15.7 trillion in total debt by the end of this month, which is a $1 trillion increase from what it was back in 2008.

Americans have always been in debt, and if often requires the government to take drastic actions to prevent us from entering another scary phase where millions struggle to make ends meet. So, while the Obama Administration helped us take care of a large chunk of mortgage debt, that freed us up in pursuit of other debts.

While jobs were laying off workers, many decided to go back to college and get a degree, leading to a shift in the type of debt Americans are accumulating. Currently, student loan debt is about 42% of the total amount of debt consumers have. Credit card debt is at about 27%.

The numbers have reversed in the last decade, as credit card debt was 42% and student loans were at 27%. 10.3% of our disposable income is going towards student debt alone, which is up from 6% a few years ago, a 130% increase since 2008.

75% of millennials today say they’re stressing big time over their student loans as they struggle to pay them back. They’re graduating college with all this debt, but not finding adequate work to help them pay off even the basic minimum they’re required, often throwing their loans into default.

The battle now within the government is how much they’re willing to help students overcome this massive burden. The Obama administration instituted several programs that are still available to this day, but the Trump administration has targeted their removal to help cut federal spending.

Trump has agreed to leave these programs alone for now, but no one knows what will happen when the 2019 budget is formulated. That leaves students with a short amount of time to get the help they need to pay down their student loan debt.

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