in debt

Eight In Ten Americans Are In Debt

Eight in ten Americans are in debt. That debt is becoming heavier and heavier, and lasting longer into our old age. It’s true that the average healthcare costs, food, and housing prices are rising disproportionately to wages. Debt itself becomes a significant expense, causing us to pay debilitating rates every month without putting a dent in our principle, or getting any return for our payment. However, here at Afortus, we believe that whatever odds are stacked against you, it’s possible to achieve financial freedom through wise management.

How Is It Done?

When it comes to getting out of debt, the hardest part is getting started. Most people have never learned the base knowledge that one needs in order to effectively manage money. We’re not taught how to understand taxes in school, what compounding interest is, or which laws protect you from being taken advantage of by creditors. Because of this, it’s hard to know which steps you can take to be proactive and get out of debt. Most people look at their financial situation, try to brainstorm ways to cut back on expenses or to gain more money… and then they hit a few discouraging walls and end up giving up or trying not to think about it.

Well, here at Afortus, we sit down to talk with our clients, getting a full view of their financial history and situation before we develop a multi-faceted plan formulated to get individuals out of debt, set up a workable household budget, and start down the road to retirement planning.

A debt recovery plan might include any or all of the following:

  • Refinancing loans: If you’ve taken out a loan for your home, car, or education, it’s possible to get refinancing in order to get a better interest rate. This can be especially helpful if you have a good credit history and you’ve been a reliable debtor so far. When we get locked into a loan, most of us don’t do much shopping around to find our best rates. We can help you find a rate that works better for you.
  • Consolidating debts: Consolidating debt consists of taking stock of your various debts and organizing payments so that you’re just making one payment each month. This can reduce the total amount that you have to pay because it simplifies the debts overall. However, improper consolidation can actually increase the responsibilities that you have, and increase the risk attached to your debt, so it’s important to consolidate your debts through a trusted source.
  • Renegotiating expenses: It’s a surprise to many people, but the truth is that there are many expenses in life that are negotiable. For example, it’s possible to negotiate payments for medical bills. Insurance companies do it all the time, but few individuals realize that they have that ability as well. We can help you know which of your expenses are flexible and find a way to lower your payment.
  • Prioritizing debts and payments: Not all debts are created equal. Some are relatively benign, and can even help you build credit. Others are poisonous, with terrible interest rates and dangerous risks attached. An experienced financial advisor can help you take stock of your debts and determine which need to be paid off first.
  • Creative saving and earning: Often, there are possibilities for making money and cutting back on expenses that you don’t see because you’re used to your routine. However, it can be possible to raise your monthly earning through creative methods that won’t require much extra work on your part. We can help you understand innovative ways to make your income and expenditures balance out better.
  • Strict budgeting: The majority of American households do not stick to a budget. However, a budget is hands-down the best way that you can get a hold of your financial situation. By cutting back on flexible expenditures and understanding the areas where you’re hemorrhaging money unnecessarily, you can gain financial freedom.


An Integrated Financial Plan Helps Things Go Smoother

Many people think that before they start saving for retirement, they need to eliminate debt completely. However, most of the time, an integrated plan is the best way to achieve your financial goals. Financial stability starts with small and steady steps, and time-honored habits of frugal living and adhering to a budget. Here at Afortus, we believe that financial empowerment can be taught, and we want to do our part to ease the crippling debt and financial confusion that plagues most Americans.

The beautiful thing about an integrated plan is that each area of financial planning interacts to help each other. For example, once you’ve built yourself an emergency fund, you’re less likely to trip into debt for unexpected expenses that arise. As you eliminate debt, it becomes easier and easier to put that money towards retirement instead, and because of the miracle of compounding interest, money that you put into retirement early on grows more than money that you invest later in life.

Trust Our Professional Consultants

Our team of professional financial consultants is here to help you. We genuinely want to help families in our community gain more peace and happiness through becoming financially solvent. When we’re free of the burden of debt, and resting easy about our future, we’re able to focus on the important things in life, and be proactive with our dreams and goals.

So, stop in to see us. We promise to take an honest look at your situation without judgment. We’re not here to be critics, but assistants. When you thrive, so do we!