Steps to Take to Figure Out Your Finances
- April 14, 2021
- By: Greenpath Financial Wellness
Since April is Financial Literacy Month, it’s a good time to figure out your finances and the steps to take when it comes to debt.
A situation we see here at GreenPath Financial Wellness when we talk to clients – a gradual increase in credit card debt balances over time with high-interest rates and the ability to make only low minimum payments each month.
Perhaps a person’s cards are maxed out, and they are experiencing calls from collection agencies.
The average credit card interest rate is 16.04% according to Creditcards.com. A recent study has shown that about 23% of existing credit cardholders have added to their current debt as a result of the pandemic.
For people utilizing credit more and having problems making payments or meeting the minimum payments on credit cards, a high balance and accruing interest make it more difficult to get out of debt.
YOUR JOURNEY TO FINANCIAL WELLNESS BEGINS HERE.
Whatever your financial situation, take our 3-minute assessment and we’ll work with you to create personalized steps for moving forward.
Figure Out Your Finances
Questions about managing money can be tricky. While each person’s situation is different, some steps to take to figure out your finances include:
- Monitor your bills regularly. If your creditor has granted a payment deferment or waived fees, interest could still be accruing. Annual fees could also still apply.
- Monitor your credit report to ensure your credit history is accurate.
- If you must utilize credit, try to use credit cards with low interest. That’s part of using credit cards wisely. Or, request a reduction in your interest rate as a hardship option.
- Don’t ignore the problem! Don’t delay in speaking to your creditors to see what hardship assistance programs are available. Most credit card companies are offering COVID-19 accommodation.
- Review your income and your expenses. Set a simple spending plan.
- Having a fresh set of eyes to review your situation is never a bad idea.
- Talk to a trusted national nonprofit like GreenPath, who can contact your creditors with you, and ensure you understand your options.
- For those facing financial challenges, credit cards are typically only part of the picture.
- Counselors can help focus on your total financial situation and make a personalized plan to address the debt moving forward. Having a clear strategy for handling your credit card debt can help you feel more in control of the situation and reduce stress.
Financial Literacy Month is a good time to connect with a caring financial counselor to conduct a free financial counseling session.
What are the steps to take that are right for you? If you are ready to manage, and eventually eliminate, your debt, let’s connect!