Debt Repayment Can Wait?
Despite what the Internet says, people under 50 aren’t spoiled or entitled. We are just pushed to the limit with stress. The only way we can survive is by focusing on the things that matter at the expense of everything else. We scrambled day and night until we realized that life is too short and money is too scarce to waste time with things like dinner napkins, fast casual dining, and bachelorette parties. We have enough clarity to realize that, if busting yourself at work year in and year out is going to get you a lot of money, and nothing else, then it isn’t worth doing it. The Great Resignation isn’t about laziness; it’s about being realistic. Of course, anyone who says that money doesn’t matter has not lived through financial hardship. Even though the younger cohort of working aged adults does not have the same financial ambitions that Baby Boomers had at our age, most of us work at least 40 hours per week, even if the money we earn is barely enough to cover the bills. For us, all of this claptrap about the avalanche method of debt repayment sounds woefully out of touch. For realistic advice about your financial situation, contact a Miami debt lawyer.
If You Have a Snowball’s Chance in Florida of Paying Down Your Debt, Maybe You Have Bigger Things to Worry About
The fastest way to get out of debt is to put every possible penny in your budget toward debt repayment. If you do this, you will quickly see your debt balances grow smaller, whether you follow the snowball method, where you start by paying down the smallest debt, or the avalanche method, where you start by paying down the debt with the highest interest rate. Of course, paying down your debt might not be your highest priority, and for good reason. If you only had X amount of money to spare, would you spend it paying down debts or on life-saving veterinary treatment for your pet? Would you spend it on debt repayment or on a plane ticket to visit a relative in hospice care? The people and animals you love are more important than money, and losing a loved one because of financial hardship belongs in tearjerker movies, not in your reality.
By this logic, you should not start your ambitious debt repayment plan until you have built an emergency fund equal to one month’s expenses; this would be enough to pay for the aforementioned vet bills or plane ticket. Trim your expenses and rack up the side gigs as you would if your goal was to pay down debt, but put the extra money toward an emergency fund, and once it is there, then rock on with your snowball or avalanche.
Work With a Debt Lawyer About Putting Your Debt Problems in Perspective
A South Florida debt lawyer can help you see through the hype about the importance of being debt-free. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.
Source:
cnet.com/personal-finance/5-debt-payoff-tips-for-low-income-households/
