Should You Jeopardize Your Nest Egg to Repay Your Credit Card Debt?

The total outstanding value of US credit card debt is now over $1.02 trillion. This places a significant burden on total US household debt, and amounts to a debt burden of around $7,000 per household. It is encouraging to note that less than 50% of US households have any credit card debt whatsoever.

If we exclude these households with no debt, then the average credit card debt for indebted people amounts to $15,624. While this figure is substantial, it is also much lower than it has been in 5 years. Consider the following average credit card debt balances among debt carrying households since 2013:

• 2013 – $16,319
• 2014 – $15,876
• 2015 – $15,692
• 2016 – $15,810
• 2017 – $15,654

These numbers paint a skewed picture of the actual debt burden. Over the years, the average household debt may have declined among debt carrying households, but the overall level of debt has increased substantially. Simply put, more people are sharing the debt burden than ever before. 

This is largely due to an era of ultralow interest rates which made borrowing cost effective for so many US households. The percentage of US households carrying credit card debt has increased from 38.1% in 2013 to 45.6% in 2017, and this trend shows no indication of slowing down. 


With unemployment hovering around 4.1%, and the US economy booming, spending is on the up and up. Easy access to credit has facilitated a credit boom, even after banks and financial institutions clamped down post global crisis.

If You Are in Debt, How Should You Pay for It?

Naturally, there are concerns about how best to manage debt. Several options are available to reduce the debt burden, notably switching (transferring) debt from high interest credit cards to lower interest credit cards. 

This method is heavily promoted in the media, and by credit card companies, but it comes with a caveat: There are costs involved in transferring balances from one account to another. All the pros and cons should be weighed up against one another.

Other options include using a savings account such as a 401(k) for retirement to pay down credit cards. This is generally not advisable, since it will cause disruption to your retirement nest egg, and there are various penalties and tax consequences to contend with. 

An important consideration when it comes to credit card debt is that it is unsecured debt. This means that it can generally get discharged in a bankruptcy filing, and assets cannot be attached to its repayment.

Perhaps the most pressing question for the 50+ generation is why the debt still exists? Debt elimination, debt management, and debt consolidation options are readily available from multiple bank and non-bank entities. Sometimes, it may be a good idea to discuss the situation with a financial planner.

What’s the Worst That Can Happen with Unsecured Debt?

If there is absolutely no other way to repay credit card debt, and you risk ruining your credit profile, it is possible to use a 401(k) loan to repay credit card debt. These loans are much more cost-effective than credit cards, and the interest that you pay goes directly to your own account. 

On the plus side, there is no negative effect on your credit score. Experts do not recommend taking money from retirement to pay down credit card debts, since money in hand is more valuable than access to credit that can easily get taken away from you.

Other ways to consolidate your credit card debt include home equity loans, unsecured personal loans, and balance transfer cards. These methods should be assessed on their merits, given that there are pros and cons associated with each of them. 

It is never advisable to transfer debt from an unsecured line of credit to a secured line of credit such as a mortgage loan or a home equity loan.

You stand to risk a lot more than your credit score if you cannot make the repayment. The balance transfer card option is a viable solution provided your credit score is high. Be advised that the interest-free component will cease after 12-18 months. 

For unpaid credit card debts, you could face a loss of credit lines and a reduced credit score. You will however get to keep your existing assets, pending further litigation.

6 Secrets to Saving Big on Healthcare Expenses

If your family is like many, you might find that you spend a lot of money on healthcare. This can be easy to do, and you could be having a hard time fitting healthcare costs into your budget. However, of course, you and your family’s health is important. Luckily, it is possible to ensure that your family gets the healthcare that it needs without going over your budget. These are a few secrets that can help you save big bucks.

Take Advantage of Free or Low-Cost Services

First of all, when possible, consider taking advantage of free or low-cost services. If you’re offered healthcare screenings or other services through your job, utilize these services. You may also be able to find free or low-cost screenings, flu shots and other healthcare services for the people in your community.

Focus on Proper At-Home Preventative Care

Taking good care of yourself at home can help you reduce your current and future healthcare costs. For example, a lot of people forget that Hammond dental care can have a big impact on your overall health. Brushing, flossing and otherwise taking care of your teeth can help you prevent issues in the future. 

Additionally, eating a healthy diet, exercising and doing what you can to stay healthy can also help you reduce future healthcare costs and can help you look and feel your best right now as well.

Check for Errors

Many people don’t take the time to read the bills and invoices from their doctor’s offices. However, a simple mistake could end up costing you a lot of money. Therefore, it’s always a good idea to look over your invoices to look for any potential errors before paying a bill.

Choose the Right Facility for Your Healthcare

Some people get stuck in the rut of seeing the same doctors and heading to the same healthcare clinics over and over again. However, it is important to make sure that you are going to the right clinic.

For example, before seeing a dentist, consider calling around and asking about the cost of basic services, such as X-rays or cleanings. If you need to have major dental work done, it’s definitely worth it to call around and look for the best deal.

If you aren’t experiencing a medical emergency, avoid going to the emergency room; the emergency room can be a lot more expensive, and you could have to wait longer for care as well. Instead, consider utilizing urgent care facilities and primary care clinics for basic care, which can be much more affordable.

Ask for Cash Discounts

If you pay for a lot of your healthcare expenses out-of-pocket, you may want to consider asking for a cash discount. Many doctor’s offices, hospitals and more will offer a discount if you are paying for everything upfront. 

This is because they are saved a lot of time and money due to not having to send out bills or deal with an insurance company. You could be surprised by how much they will be willing to negotiate with you if you have the money to make the payment ahead of time.

Look for Ways to Save on Medication

If you spend a lot of money on medication, you should know that there are ways to cut costs. Ask your doctor if there is a cheaper prescription available, and consider opting for generic brands of medication. Some pharmacies offer loyalty programs that can allow you to save money on your prescription costs as well.

As you can see, there are ways that you can save money on healthcare for yourself and your family. If you follow these tips, you can shave down your costs. Then you can ensure that your family stays as healthy as possible, but you can stick within your budget.

4 Tips to Reduce Holiday Stress

The Holidays, one of the most joyful and wonderful times of the year, is also one of the most stressful times of the year. At times, it can be hard to focus on the moments and enjoying the season, instead of being stressed about finances, making sure the turkey doesn’t get dry, in laws coming into town, and making sure you don’t spoil the Santa surprise for your children. That’s a lot to stress about in just a short few months.

Healthy Coping

It’s inevitable that you’ll feel stressed during this season. Rest knowing that you and your family are creating incredible memories that will be cherished for years to come. In addition, remember that the holiday season is almost over. 

You don’t have to deal with it for very much longer, so you just have to cope with the stress for a few more weeks and then you can focus on the new year.

Amid all of this stress, make sure that you don’t let how overwhelmed you feel make you turn to unhealthy habits to cope with the stress. 

The holiday season is when the majority of relapses happen. Whether you’ve ever had issues with substance abuse or not, don’t let yourself rely on alcohol and other substances to relieve stress.

Take a Step Back and Breathe

As Thanksgiving has ended and we’re nearing Christmas, the stress is paramount. It may feel like too much, sometimes. When you start to feel overwhelmed, make a conscious effort to take a step back and to take a break. 

Everything that is stressing you out will still be there when you get back, and the house isn’t going to burn down if you need to take twenty minutes to yourself before you throw yourself back into the thick of it. 

Go into your room and lock the door, and just close your eyes. Even if you have to lock yourself in your closet, or bathroom, or office, whatever room of the house you can get a few minutes of peace to focus, take advantage of that room and give yourself a few minutes. 

You deserve it. Close your eyes, and focus on your breathing. This link has a great guide for breathing exercises. Taking just a few minutes to focus on breathing will help clear your mind and better prepare you to handle all of the issues that are waiting for you when you’re ready to tackle them. 

Don’t Eat too Many Holiday Goodies

It’s much too easy to let your nutrition go during the holiday season. Pies, cakes, puddings, halloween candy, and stocking stuffer candy is just the beginning of the tempting holiday goodies. 

There’s a reason why most people need to dedicate the first few months of the year to lose weight! The holidays are really filled with candy and goodies, and while it’s fine to indulge and let yourself enjoy everything that this holiday season has to offer, you also need to make sure you know when to stop. 

Don’t let yourself get carried away. Make sure you’re conscious of every single thing you put in your mouth. If you start eating mindlessly, soon enough you’ll find yourself with an empty pie tin and an entire bag of Reese’s Peanut Butter trees gone. 

Having a proper diet will help you deal with stressful situations better. In fact, having a proper diet affects a lot more areas of your life than you would probably realize. Eating right will help you have more purposeful sleep, improve your skin and hair, as well as improve your mood. If you’re happy, your holidays will be happier.

Focus on Experiences, Rather than Things

A lot of what makes the holidays special is all of the gift giving. Giving gifts to your loved ones is a fun experience, but it’s all too easy to get wrapped up in the pursuit of the perfect gift for the people in your life. 

It’s just too easy to forget about why we celebrate the holidays, and focus instead on just gifts and things. Try to shift your mindset from things, to experiences. Experience reading Christmas stories with your family while you all sip on hot cider. 

Experience driving around to see the most extravagant holiday lights you can find. Take time during the holidays to create new traditions that are focused on experiences, rather than gifts and things.

Finding Funds: 4 Tips for Buying a Boat

When spring and summer hit, it’s always nice to have a boat you can take out on the water. It gives you the opportunity to catch some sun, spend time with friends and family, and try some wakeboarding or other fun activities. 

A boat is a big purchase, though, and you definitely want to make sure that you get the right one. Here are some useful tips on how you can buy the boat of your dreams.

Determine the Features You Need

There’s a wide range of boats available, and within each category, there are boats with all kinds of different features. The first thing you should do is figure out what you want to do with your boat, whether that’s fishing, waterskiing, sailing or something else. 

Keep in mind that there are boats that can handle multiple different activities, such as fish and ski boats.




Once you’ve got the category figured out, you can move on to your desired features. Knowing these will make it much easier to filter through options and narrow things down. Write down everything you want so that you can refer back to it if you do any online searches.

Go to Boat Shows and Dealerships

Now it’s time to start looking at boats. The best place to start is a local boat show, where you’ll be able to check out many different boats in one afternoon. 

The great thing about boat shows is that there will be many dealers there, and you can also see which dealers you like. Make a list of questions before you go. That way, you can ask every dealer the same thing and judge them evenly.

After you’ve found a few dealers that you like, you can pay their locations a visit. Marine Industry has a database of certified dealers that you may also want to check out.

Record Your Thoughts on Potential Boat Options

It’s easy to get overwhelmed when you’re looking at boats, especially if you’re a bit new at this. To make sure you can properly evaluate the boats you look at, bring a notepad to record what you like and dislike about each one. Otherwise, you may get home and forget certain things.

Another option is to record a video on your cell phone when you check out each boat, which is nice if you don’t want to write all your thoughts down. Whichever method you choose, use your logs to compare the boats you’ve seen and decide on one that best fits what you want.

Get Your Financing Ready in Advance

It’s best to handle as much on the financial side of things as you can in advance, instead of waiting until you’ve found a boat you love to get a boat loan. Before you go boat shopping, figure out what your budget is, make sure your credit score and income are sufficient for a boat loan, and visit a few lenders to see what kind of terms they can offer you.

Just about any lender can preapprove you for a loan and provide loan terms with only basic information and a soft credit check, which is the credit check that doesn’t impact your credit score. 

Compare your options to choose the loan that will cost you the least in interest. Used boat financing is typically easier than financing a new boat, so if you’re having trouble that’s a route you can consider. 

The process of buying a boat can be stressful, but just remember that this should be an exciting purchase for you. Get the financial part taken care of, and then enjoy the process of finding your boat.

5 Money Management Tips Around the Holidays

An increase in expenses and the abundance of temptation during the holiday season can cause you to go incur more debt than you can manage. If you’re barely making it from payday to payday, any additional expenses can result in stress and worry regarding how to handle your monthly bills. There are some tips you can follow to help with money management around the holidays and throughout the upcoming year.

Prepare a Budget

If you don’t currently have a budget that you’re using consistently to manage your money, now is the time to create one. A prepared budget will show you clearly how much income you have coming in and where most of that income is going. 

Installment loans from a company like Las Vegas Finance require a fixed amount be paid each month. This type of payment will remain a consistent part of the budget until the loan is paid off.

Variable Expenses

Utility bills and credit card payments vary. To assure that you can cover these bills, figure in what is typically a high amount so that you’ll be sure to have money in the bank to cover them. 



Utility bills often vary according to seasons. When you have a decrease in your utility bill, you can apply the extra money to a credit card bill to expedite the payoff.

Budgeting for Holiday Gifts

Even if you don’t shop for holiday gifts until after Thanksgiving, you can still factor the expense into your monthly budget. Setting aside a little money each month can lessen the shock to the budget when the holiday shopping time arrives. 

Once you know how much you have to spend, it’s essential that you exercise restraint and stick with that amount. You can implement some frugal shopping techniques to stretch your money as far as possible.

Holiday Entertaining

The holidays can be a time for family and friends to get together for meals or parties. You shouldn’t over-extend yourself or your budget for holiday entertaining. Arranging potluck dinners can ease some of the financial strain when you’re hosting a meal. 

Keeping snack foods to a minimum and serving homemade treats can also ease the strain on the budget. If finances are tight, you can politely decline invitations that you feel you must reciprocate.

Holiday Traditions

Family traditions make the holidays special. To avoid additional financial stress during the holidays, create some inexpensive traditions such as taking a drive to view local lighting displays, watch Christmas movies at home or attend free local holiday events. 

It’s the memories that are made, not the expense of the adventure, that matter the most.

It may take some self-discipline to stick to your monthly budget during the holidays but doing so will eliminate the post-holiday stress that comes from over-spending. Make the holidays more about experiences than about material things.

Financial Failure? How to Find Relief From All Your Debt

Financial ruin is probably one of the lowest points in your life. You may not feel like you will ever by able to get out from under this burden. Here are some things to consider if you have reached this financial tipping point.

Consult on Debt Management

There are agencies available that can help you to look into your options for debt relief. Some of these agencies will even negotiate with your creditors for you. 

The downside to using one of these agencies is that there might be fees associated with their assistance. Weigh the benefits of this assistance with the additional costs. It may not be in your best interest to use one of these agencies. 

Before you decide to go this route, make sure that the agency you are considering is reputable. You don’t want to find out that they aren’t really helping you.

Settle Your Debt

You may be able to make the case yourself to your creditors that you can’t pay them back. Creditors are generally more open to settling debt with you if you have a debt management plan in place. 

They don’t want you to declare bankruptcy. If you do declare, they won’t receive their money. By agreeing to set up a payment plan that is reasonable with you, they will eventually get their money back. 

This only works is you are actually able to pay them back. Make sure the plan you have in place is doable. You may just end up back where you started if you can’t afford to make the payments

Look Into Debt Consolidation

You may be able to consolidate your debt into a single loan. This would enable you to have one set payment each month to start the debt relief process. These types of loans are typically personal loans. 

You would need to make sure that the amount you are borrowing will pay off your other loans in full. Take into consideration the interest rate on this new loan. You don’t want it to be higher than your other types of loans. 

This will only cause you to lose more ground. This solution may be able to get you out from under your financial burden.

Consider Benefits of Bankruptcy

Bankruptcy should be a last resort. This is an option when you will not be able to pay back your debt at all. The downside to filing for bankruptcy is that your credit will be ruined for several years. 

You will have to rebuild your credit once the timeframe has passed. Consult with a bankruptcy lawyer, like those from the Law Office of Barbara B. Braziel, in order to navigate this process. A lawyer will be able to help you eliminate that debt in the most efficient manner possible. 

They will also be able to advise you on the type of bankruptcy to file depending on your financial situation.

Financial hardships can be managed with a little planning. Use these steps to find relief from your debt.