Debt. High interest debt. Paying high interest for purchases of ‘stuff’ is a killer to your finances (you already know this). However, sometimes it isn’t the interest you are worried about, it’s the monthly payment obligations. Especially as people are laid off or have their hours reduced during our current economic slowdown. Now, today, sit down and look at ALL of your currently monthly payments and debt balances. Strongly consider a debt consolidation loan to help you get back on track and saving more for retirement. Consider this example, perhaps it illustrates your situation. Perhaps it opens your eyes to the power of cash flow to help you retire earlier!
Let’s assume you owe $40,000 in total debts that have over $1,000/month in payments:
Car payment: $275
Retail Credit Card (Bay, Sears, etc.) $175
Loan (line of credit) $286
TOTAL PAYMENTS: $1,016
A debt relief mortgage/loan can pay these debts to consolidate into 1 monthly payment of approximately $402. Saving you $614/month in this example! Now put that money into savings any you will soon go from being in debt to having a retirement fund!
Call me if you think this is something you would like to explore for your debt. I can't help with your broken new year resolution though, google Bob Newhart's skit on 'Stop It' for that part.