Lesson 8 – Pay Off Your Debt
- July 21, 2021
- By: Greenpath Financial Wellness, GreenPath Financial Wellness is a trusted national nonprofit with more than 60-years of helping people build financial health and resiliency. Our NFCC-certified counselors give you options to manage credit card debt, student loans and homeownership.
This week we are going to talk about debt.
Debt, like many words in the financial world, is a bit controversial. There is ‘good debt’ and ‘bad debt’. ‘Good debt’ is considered debt used to pay for something that has long-term value and increases your net worth (such as a home).
Bad debt is the opposite. Bad debt is something that will not go up in value or generate income. Some examples of bad debt would be cars, clothing, and credit card debt.
In my opinion, it is all about how an expense makes you feel. While a home may be a significant investment, maybe that is not your goal, and the mortgage payment is stifling. If that is the case, that mortgage is not good debt. If your credit cards feel like they are holding you back, then it’s bad debt.
4 out of 5 Americans are currently in debt.
This week’s email is about creating a plan to pay off debt. If you do not have debt that you are working to pay off, CONGRATULATIONS! You can use the information in this email to help someone you know who is trying to pay off debt!
Here are the top 3:Â
- Use a balance transfer to pay off high-interest credit cards.
- Pay extra towards your debt using the snowball or avalanche method.Â
- Enroll in a debt repayment plan to lower interest rates and provide structure.
If you’re not sure where to start, it is a great time to set up a meeting with your coach!Â
We are excited to help you on this journey.Â
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