Thursday, March 2 | Paying Down Debt IS Saving
Just like having a plan for saving is important, so is having a plan to pay down your debt. Recent reports show that individuals have increased their usage of credit cards due to the ongoing inflation and rising costs of our basic needs like housing, food, and transportation.
Couple that with the return of student loan debt repayment and the interest rates increase, and the ability to pay down debt is exacerbating the savings crisis, hindering the ability to save for emergencies and remain financially stable for many Americans.
We want to remind you that paying down your debt is an essential component of savings.
Today, We encourage you to:
Check your credit report
Grab your credit score at annualcreditreport.com
Check out these resources from our friends at America Saves to support you today:
BLOG POST: Tips to Increase Your Credit Score
VIDEO PLAYLIST: Tackling Debt
PODCAST EPISODE: How Do I Pay Down Debt?
If you’re struggling to prioritize your debt in the current economy, Amelia from America Saves wants you to know that you’re not alone! Check out her debt repayment story.
If your current goal is to reduce debt, we encourage you to identify your money story with America Saves for encouragement, accountability, and support along the way!
Looking for Veteran and Military specific resources? Check out these resources:
Still not convinced that debt is a big deal? Let's take a look at a few other reasons for knocking out debt.
Paying off debt is not only good for your financial future, but good for you emotionally and spiritually. In this Forbes article from August 2023, among those surveyed, financial security was listed as the number one motivator for getting married and financial stress also made the top 5 reasons for getting divorced.
In addition to marriage problems, studies show that long term debt leads to an increased chance of depression. A recent study done by the CDC showed that depression decreased as family income levels increased, and that families with lower incomes were significantly affected by depression. If these statements are true, long term debt will not only affect your marriage and mental health, but could be detrimental to your family lineage.
When it comes areas of life where the stakes run this high, we don't want to close the conversation without applying biblical wisdom as well.
Proverbs 21:20 in the Amplified Bible says, "There is precious treasure and oil in the house of the wise [who prepare for the future]. But a short-sighted and foolish man swallows it up and wastes it."
Proverbs 22:7 in the English Standard Version reads, "The rich rules over the poor, and the borrower is the slave of the lender."
There is much to consider when it comes to paying down debt. And the truth is, if it were easy, everyone would do it. That's definitely not the case, but we want to encourage you that it can be done and you can do it!
Now is the time to make a positive change in your marriage, your mental health and your family lineage. Take the pledge to save and start setting your goals to get out of debt!
We'll see you back here tomorrow as we explore how you can start Saving At Any Age.