Financial Literacy Is the First and Easiest Step to Feeling Financially Secure

The feeling that you are in control of your situation is as empowering as it is illusory.  By the time you are old enough to live paycheck to paycheck, you know that many of the factors that influence your financial situation are beyond your control.  Your medical debt exists because healthcare is unfairly expensive; voters have an impact on healthcare policy, but yours is only one vote among millions.  Market forces that determine the prices of the things you cannot avoid buying are far too complex for you to change them simply by changing your habits.  Despite this, understanding your financial situation is the first step to improving it.  Financial literacy alone will not make money miraculously appear in your bank account that you can use to pay down your debts, but it will help you develop a realistic plan for debt repayment and make informed decisions about debt relief options such as debt consolidation loans, debt settlement, and filing for bankruptcy protection.  For help understanding your financial situation in order to improve it, contact a Plantation debt lawyer.

The Four Quadrants of Financial Stability

According to Kelli Grant of CNBC Personal Finance, the four factors that contribute the most to American consumers’ sense of financial stability are home ownership, not having outstanding debts, having money in savings, and having a thorough understanding of one’s financial situation.  The first factor is so elusive that most Americans under age 40 who have never owned a home doubt that they will ever be able to afford to own one.  The second and third factors can be measured by “how much” instead of just by yes or no.  You probably make payments toward your debts each month, perhaps considerably more than the monthly minimum, but you are a long way from being debt free.  You might also have money in savings, but one home repair or temporary job loss can wipe it out quickly.  In other words, savings and paying down debt are in your orbit, but they do not give you a sense of financial security.

Knowledge Is Priceless, and It Costs Very Little to Acquire

If you are planning to file for bankruptcy protection or negotiate with creditors to settle tens of thousands of dollars, or even more, in debt, you should consult a lawyer.  If you are just trying to find ways to put more money toward debt repayment, you should start by talking to the people around you.  Our society makes it hard for people to talk openly about how much they earn or how much they owe, but start by talking with your friends and coworkers about your debt repayment goals, such as which debt you are trying to pay off first or how you changed your budget so that you had more money available for it.  Listen without judgment while other people share their debt repayment strategies.

Work With a Debt Lawyer About Paying Down Debts

A South Florida debt lawyer can help you strategize about your debt relief options.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

cnbc.com/2024/04/03/learning-about-money-can-help-you-feel-financially-secure-cnbc-survey.html