Just because you are at the peak of your earning potential, that does not mean you are above receiving a debt relief tip.
Yes, that is a jab at the Gen Xers. You are a part of this generation if you were born between 1965 and 1979 – that means in 2018, you are 39 to 53 years old. Apparently, when you reach this stage in your life, you reach the peak of your earning potential. Compared to other generations, the Gen Xers are the people who are currently taking home a lot of money. However, reports also reveal that this age group has the highest amount of debt. That means their huge income is crippled by the high amount of debt that they have to pay off each month.
It is evident that Gen Xers are in dire need of debt relief. We are not questioning their ability to pay off their debts. They may have the ability to pay it back – but that does not necessarily mean they will not benefit from using debt relief programs. If they want to save money, they should try to find the right debt solution that will not only effectively get them out of debt – but will also help them save as much money.
Of all the debt relief options, debt consolidation seems like the most promising solution to the debt situation of Gen Xers.
Debt relief tip: Debt consolidation is perfect for Gen Xers
There are a number of reasons to choose debt consolidation – at least, this is true for Gen Xers.
Gen Xers have multiple debts
As mentioned, Gen Xers have a lot of debts. These debts include mortgage, car loans, credit cards, and even student loans. If you have multiple credit cards, that would make things more complicated. While the good credit mix can boost your credit score, it can also be dangerous. With everything that is going on in your life, it can be challenging to keep track of all your payments. It is beneficial for you to consolidate the debts that you can combine so you have fewer credit accounts to manage. You can refinance your mortgage to pay off all your car loans and credit cards. If you have multiple student loans, you can also consolidate that.
Gen Xers are at the prime of their careers
Another reason why using debt consolidation is a good debt relief tip is that fact that Gen Xers can afford it. Although they have a lot of debts, their high income allows them to pay it off without a problem. There is no need for debt reduction. All they need to do is to simplify their debt payments by combining it into a few credit accounts. That would help them manage their debts easily – making it unlikely that they will miss out on payments.
Gen Xers need to get out of debt within a few years
Finally, debt consolidation is perfect for Gen Xers because they need to get out of debt in a few years. They are nearing retirement and they should take charge of their debts. You do not want the stress of debt to follow you into retirement because that can cause some health issues. When you are nearing retirement, a wise debt relief tip is to get rid of your credit obligations as soon as you can. This is why it is helpful to have a new credit account to absorb your multiple debts. This new credit account should allow you to pay off your debts as quickly as possible. You want to go for a low-interest loan or credit account so most of your payments will go to the principal debt and not the interest.
More debt relief tips while consolidating debts
If you decide to listen to this debt relief tip and proceed to use debt consolidation to get out of your credit situation, you will soon find yourself gaining progress with your payments. Of course, this is not something that you can accomplish overnight. That is why you need to be very patient. You just have to make sure that you meet each and every payment. If you can pay more, then do it. Soon enough, you will find yourself nearing debt freedom.
To help you with debt consolidation, here are debt relief tips that you can also use.
Adjust your budget plan
Every time you make changes in your life, you need to immediately consult your budget to update it. Your life goes through a lot of changes and it is very important that your budget plan is revised according to these. If you just started debt consolidation, you need to make sure that your monthly payments will be indicated there. That will ensure that you will fund it every month.
Boost your savings
Another thing that you can do is to give your savings a boost. There are two important things that you need to prioritize. One is your emergency fund. This fund will help you through unexpected events in your life. It will keep you from borrowing money to survive a financial emergency. The next fund that you need to focus on is for your retirement. According to reports, 7 out of 10 Americans are either “extremely” or “somewhat” concerned with their retirement fund. 21% have nothing saved. You do not want to be a part of this statistic so make sure you save up as early as you can.
Be cautious when using debt
Finally, you need to be better and smarter at using debt. You do not have to stop using debt because it can open a lot of financial opportunities for you. For one, you need it to keep your credit score up. You can keep on using debt as long as you know how to use it properly. You just have to make sure that you pay it back so it will not cause you problems in the future.