It is illogical and foolish to throw away or waste something that you need, which is why many people experience a sinking feeling whenever they are forced to do so.
Unfortunately, many have to see their hard-earned money practically disappear without any material benefit to them, thanks to the existence of debt and debt servicing.
Borrowing money is not necessarily a bad thing; it can be a way for you to build up your financial assets and your credit score. Homes, small businesses and education are often financed by borrowed money, which can be paid off if you stick to a reasonable payment plan. However, if you do not stick to a payment plan and end up accumulating a large amount of debt with high interest, then credit can be evil because you will eventually have to pay back the debt plus interest.
The Facts
Unfortunately, many Missourians are forced to throw away their money on servicing their debt instead of using it to buy the things that they really need or want. In 2005, Americans spent nearly one-fifth of their disposable income on servicing their debt. Since the median income for Springfield Missouri in 2012 was $41,439, approximately $8287.80 went to interest on debt. Seeing as debt is enlarged by interest, having to allocate a large chunk of your spending money on interest payments instead of using it to invest is a shame.
In order to make sure that unpaid debt doesn’t put you further in the hole, you have to start taking control of your debt and your money through debt consolidation. In the wise words of the financial guru Dave Ramsey, “You must gain control over your money or the lack of it will forever control you.”
We Can Help You
As a side benefit to paying down credit card debt I have seen credit scores improve by 20-40 points in a matter of a week due to my client paying down their credit card balances below 40% of their limit. We can then quickscore them using an updated statement to help push the results through faster. Revolving debt maxed out will kill a credit score as the agencies (Transunion, Experian and Equifax) and their scoring models like to see revolving debt managed well below the available credit limits.
If you are ready to take control of your finances but need financing assistance from a reputable company, you will be happy to know that PrimeLending offers various loan options to help you. We have helped thousands of homebuyers purchase or refinance their homes. Contact us today and speak with one of our experience mortgage bankers!
