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Increasing Wealth Begins by Reducing Debt

October 8th, 2010
reduce debt, increase wealthIf you’re trying to plan for your retirement, your children’s education, setting aside savings or considering a plan to substantially increase your personal wealth, it all begins with eliminating or radically reducing your current debt load.

Sound impossible?

It’s not.

We’ve helped hundreds of clients who have come to us seeking advice and guidance to manage and grow their financial assets–and many of them have been saddled with debt, primarily credit card debt.

Because our services are highly customized to meet every individual client’s financial goals given their unique circumstances, we don’t advise blanket plans for reducing debt, but here are a few general tips that can help you start to tackle your debt–in particular your credit card debt–so you can save more:

1) Pay off MORE than your minimum credit card balance each month. This may not be new news–and it may be hard news to swallow on a monthly basis. Usually, the interest on a credit card is the highest APR you’re paying on any of your unsecured debt (and secured debt for that matter). You’ve heard the refrain before, but this is why it holds true, the sooner you pay off your credit card debt the better.

2) Enroll in 0% balance transfer programs if you can. If you qualify for a 0% interest transfer, you’ll be able to pay off the principal that much quicker that your current APR rate. Be cautious though of the plans you enroll in. The 0% interest may be for a limited time. So be aware of these time limits and if future interest rates could exceed what you’re currently paying.

3) Just say “no” to offers of higher credit limits. Despite these hard times and the temptation to take “the easy way out,” it really is in your best interest to avoid an increased credit limit altogether–and no credit cards if possible.

When our clients come to us looking for help to improve their financial circumstances, these are some of the guidelines that have proven helpful. Our goal is to help everyone who walks through our door achieve a state of financial fitness and a healthy perspective for their future. The first step begins by following at least one of the above.

If you have questions about how to achieve financial fitness, give us call at 817-479-9245 for a free consultation today.