Financial Wellness (5) Blogs - Page 5

In an ideal world, we would be saving and paying off debt at the same time, and even have resources to invest in the money market. But ideal worlds are rare and many people have to make a choice between paying off debt or saving for an emergency.

While paying off debt and saving money don’t need to be mutually exclusive, very often your personal finances don’t allow you to do both at the same time. Which one you pick depends on your financial expectations, goals in the future, and the priorities you have set for yourself and your household.

Disclaimer: The following is for information purposes only and should not be viewed as legal advice and should not be relied upon without consulting an attorney.

It is legal for creditors to employ debt collectors to help them collect money that is due to them. However, when attempting to recover money from you, some debt collectors may resort to unfair, deceptive, or abusive practices in an effort to intimidate you.

Whether it's trying to maintain a certain lifestyle or prove your worth to others, it's easy  to overspend. It's especially easy to stretch your financial limits in a society that encourages consumerism.  Here are some of the most common reasons for overspending, along with some tips about what you can do to avoid these debt traps.

"The number one problem in today’s generation and economy is lack of financial literacy." - Alan Greenspan, former Chair of the Federal Reserve of the United States. Learn how improving financial literacy can benefit you.

Saving money is about more than dropping your spare change into a jar on your coffee table (though that's a good start). It's about having a plan to manage your money responsibly - a plan that you can reasonably maintain successfully both now and in the future. 

Financial difficulties can be challenging. If you suddenly find yourself in a situation where you have bills to pay, without enough to cover them, then you understand financial hardship. Financial hardships occur when you lack the money to pay for your necessary expenses, and taking on debt or missing payments might seem like your only solution. Many Americans are facing hardship, so know that if you are in this position, you are not alone, and you don’t need to feel embarrassed. Instead, there are some steps you can take to help yourself out with this type of situation.

Getting laid off from your job or having your hours reduced can be stressful. That job was how you were able to provide for yourself and your family. It put a roof over your head and food on the table. When you lose your job, your income grinds to a halt. Unfortunately, the same can not be said about your expenses. There are still bills to pay, even when you aren’t making money. These bills can drain any savings you may have, leaving you in a desperate financial situation.

Toward the end of 2019, economic experts began noticing a new trend in household debt. That’s because the state of household debt experienced a dramatic upswing in 2019, according to a recent New York Federal Bank Study. The surge of household debt that happened in 2019 is the most significant annual increase we’ve seen since what we saw right before the last economic recession, during 2007. In 2007, we saw household debt increase to over a trillion dollars. Many of the statistics we’ll be using for this article come from the previously mentioned NY Federal Bank Study.